From KCRW and KCRW.com, I'm Kim Masters, and this is the business.

I look at my own sort of part that I played in it and feel like I went bananas.

When producer Stephen Schneider discovered paranormal activity,

he lived the Hollywood dream of sudden, stunning success.

Then it all fell apart.

He tells us how it happened and what he's doing now.

But first on the Hollywood news banter, NBC Universal pays millions to settle a lawsuit brought by unpaid interns.

And it's unusual, but so far, no broadcast network has canceled one of the new fall shows. Stay tuned,

it's the business from KCRW.

I am joined by my buddy and banter, Michael Schneider of TV Guide magazine. Hello, Michael. Hello, Kim.

So NBC Universal has shelled out $6.4 million to settle a claim by a group of unpaid interns. This started with one from Saturday Night Live and then several others joined. And then it turned out there were thousands of people in the past several years who have been unpaid interns at NBC Universal. The argument being that they were used as

basically unpaid staff and they weren't given the kind of educational opportunity that you're

supposed to have as an intern. You were just basically doing scut work and therefore they should

be paid as employees. Yeah, it all started with a June 2013 ruling that unpaid interns on the Darren Aronowski directed Black Swan were actually employees and should have been paid.

And that has set up a domino effect of all of these lawsuits that have come down the pike just in the past year or so.

We've seen lawsuits at Fox.

We've seen them at Warner Brothers, Conday Nest, even the Charlie Rose show.

Sony, Viacom.

Yeah, there was one at the David Letterman Show, Late Show, a couple months ago, and that one actually was thrown out, was pulled back from the plaintiff.

So not all have successfully been enacted, but nonetheless, everyone's running scared, and this has a potential chilling impact on all

internship programs. Condi Nassas, as a matter of fact, dropped their internship program after they

were found liable for not paying their interns. Yeah, so the people who were brought the suit will

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