- Title: USA: Los Angeles loses $1.4 billion to writer's strike
- Date: 11th January 2008
- Summary: (W5) NEW YORK, NEW YORK, UNITED STATES (JANUARY 10, 2008) (REUTERS) (SOUNDBITE) (English) DAVID HAYES, "VARIETY" REPORTER, SAYING: "Every option is on the table. It's possible they might be shut down altogether. It might be a radically scaled down affair like the Golden Globes."
- Embargoed: 26th January 2008 12:00
- Keywords:
- Location: Usa
- Country: USA
- Topics: Economic News,Employment
- Reuters ID: LVA6U9AXFQB0OXG7XTN9QXMCOXH0
- Story Text: Analysts predict that the Hollywood writers strike has already cost Los Angeles $1.4 billion (USD) in lost wages and revenue. The strike, which started on November 05, 2007, has already forced the cancellation of the Golden Globes award show and now threatens the Academy Awards.
The 80th annual Academy Awards are set to take place in Hollywood on February 24, but not a single word has been written yet. And with no end in sight, the Writers Guild of America (WGA) strike may mean Oscar might miss this year's show, according to "Variety's" Dade Hayes.
"Every option is on the table. It's possible they might be shut down altogether. It might be a radically scaled down affair like the golden globes," said Hayes.
According to the Los Angeles Economic Development Corp, wages lost by guild members and the international alliance members, essentially production crews, has escalated to $1.4 billion dollars.
The loss of Golden Globes alone, watched annually by more than 20 million people, cost the city $60 million, and if the Academy Awards show is cancelled, a $130 million dollar loss is expected.
Veteran actor Tom Hanks told reporters he's worried about the people whose livelihoods have been directly affected by strike-induced salary cuts.
"There are caterers and carpenters, craft service and electricians and gaffers. There are a lot of people out there associated with the industry, for whom the sooner this work stoppage is over the better. I just hope the big guys who make big decisions up high in corporate boardrooms and what not get down to honest bargaining and everyone can get back to work."
But it's not just the little man, the strike is also affecting the advertising community, said Andy Dochin, the Director of National Broadcast at media services agency Carat North America.
He said, "Now its affecting us and 4th quarter really didn't affect us much except for late night. But now it's affecting us, prime-time shows are obviously not on the air, the ratings depressed already are being more depressed, we have clients that want to stay on the air, they want their GRP's; they bought television because it works for them."
Current strike reports are that both sides are not even talking at this point, putting the Spring upfront season, where advertisers make deals on the season's lineups, at risk as well. - Copyright Holder: FILE REUTERS (CAN SELL)
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