Nov 25, 2020
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Headline, Industry News

Economic costs mount from WGA strike

The Hollywood writers strike against major studios will cost at least $21 million a day in television production spending alone and idle 10,000 workers if it lasts much longer, experts say.

The latest estimate, which accounts only for lost wages and other production costs in the Los Angeles area, came as the strike entered its 17th day amid hopes that renewed contract talks next week could end the labor dispute by Christmas.

"If they work real hard at it, I think they could get a deal by the end of next week," said veteran entertainment lawyer and former studio labor negotiator Howard Fabrick.

The 12,000-member Writers Guild of America and the Alliance of Motion Picture and Television Producers, agreed last week to return to the bargaining table on November 26.

Fabrick noted the two sides have imposed a media blackout on upcoming talks, offering "the best evidence they are there to seriously sit down, make a deal and get it done quickly."

Added Andrew Wallenstein, deputy editor for The Hollywood Reporter, "Hopes are high and certainly the stakes are higher, which could point to a resolution sooner than later."

The parties have not held formal negotiations since last-ditch talks broke off in late October. The strike began November 5 amid a flurry of finger-pointing, posturing and angry rhetoric on both sides.

Experts say production on most prime-time shows will come to a standstill by the end of November, and development of new shows will soon be in disarray unless the strike is settled.

FilmL.A. Inc., a nonprofit group that handles production permits for the city, estimates the TV industry stands to lose $21.3 million a day from shutdowns of 65 prime-time broadcast and cable shows that are shot in the Los Angeles area.

Those shows – 44 one-hour dramas and 21 half-hour sitcoms – collectively employ well over 10,000 people whose loss of income will ripple through the local economy, FilmL.A. President Steve MacDonald said.

"Those are 10,000 people who aren’t getting paid, so they aren’t spending money like they normally do in their communities," he told Reuters.

Those 65 series account for at least 80 percent of all prime-time scripted programs produced nationwide, he said. Not included are dozens of late-night shows, soap operas and daytime talk shows that also are affected by the strike.

The Hollywood Reporter forecast more dire consequences for the industry that generates $80 million a day directly for the Los Angeles economy. The newspaper forecasts at least 33,000 workers could be idle by early next month under a strike.

A 1988 WGA walkout lasted 22 weeks and cost roughly $500 million in the Los Angeles area alone. Economists said 19,000 TV and film jobs were lost in the first month of that strike.

Jack Kyser, chief economist for the Los Angeles Economic Development Corp., said losses already extend beyond those directly impacted by the strike with restaurants, dry cleaners, car services and other businesses feeling the pinch.

<font size=1>Source: Reuters</font>

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Headline, Industry News

Economic costs mount from WGA strike

The Hollywood writers strike against major studios will cost at least $21 million a day in television production spending alone and idle 10,000 workers if it lasts much longer, experts say.

The latest estimate, which accounts only for lost wages and other production costs in the Los Angeles area, came as the strike entered its 17th day amid hopes that renewed contract talks next week could end the labor dispute by Christmas.

"If they work real hard at it, I think they could get a deal by the end of next week," said veteran entertainment lawyer and former studio labor negotiator Howard Fabrick.

The 12,000-member Writers Guild of America and the Alliance of Motion Picture and Television Producers, agreed last week to return to the bargaining table on November 26.

Fabrick noted the two sides have imposed a media blackout on upcoming talks, offering "the best evidence they are there to seriously sit down, make a deal and get it done quickly."

Added Andrew Wallenstein, deputy editor for The Hollywood Reporter, "Hopes are high and certainly the stakes are higher, which could point to a resolution sooner than later."

The parties have not held formal negotiations since last-ditch talks broke off in late October. The strike began November 5 amid a flurry of finger-pointing, posturing and angry rhetoric on both sides.

Experts say production on most prime-time shows will come to a standstill by the end of November, and development of new shows will soon be in disarray unless the strike is settled.

FilmL.A. Inc., a nonprofit group that handles production permits for the city, estimates the TV industry stands to lose $21.3 million a day from shutdowns of 65 prime-time broadcast and cable shows that are shot in the Los Angeles area.

Those shows – 44 one-hour dramas and 21 half-hour sitcoms – collectively employ well over 10,000 people whose loss of income will ripple through the local economy, FilmL.A. President Steve MacDonald said.

"Those are 10,000 people who aren’t getting paid, so they aren’t spending money like they normally do in their communities," he told Reuters.

Those 65 series account for at least 80 percent of all prime-time scripted programs produced nationwide, he said. Not included are dozens of late-night shows, soap operas and daytime talk shows that also are affected by the strike.

The Hollywood Reporter forecast more dire consequences for the industry that generates $80 million a day directly for the Los Angeles economy. The newspaper forecasts at least 33,000 workers could be idle by early next month under a strike.

A 1988 WGA walkout lasted 22 weeks and cost roughly $500 million in the Los Angeles area alone. Economists said 19,000 TV and film jobs were lost in the first month of that strike.

Jack Kyser, chief economist for the Los Angeles Economic Development Corp., said losses already extend beyond those directly impacted by the strike with restaurants, dry cleaners, car services and other businesses feeling the pinch.

<font size=1>Source: Reuters</font>

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Your email address will not be published. Required fields are marked *

Headline, Industry News

Economic costs mount from WGA strike

The Hollywood writers strike against major studios will cost at least $21 million a day in television production spending alone and idle 10,000 workers if it lasts much longer, experts say.

The latest estimate, which accounts only for lost wages and other production costs in the Los Angeles area, came as the strike entered its 17th day amid hopes that renewed contract talks next week could end the labor dispute by Christmas.

"If they work real hard at it, I think they could get a deal by the end of next week," said veteran entertainment lawyer and former studio labor negotiator Howard Fabrick.

The 12,000-member Writers Guild of America and the Alliance of Motion Picture and Television Producers, agreed last week to return to the bargaining table on November 26.

Fabrick noted the two sides have imposed a media blackout on upcoming talks, offering "the best evidence they are there to seriously sit down, make a deal and get it done quickly."

Added Andrew Wallenstein, deputy editor for The Hollywood Reporter, "Hopes are high and certainly the stakes are higher, which could point to a resolution sooner than later."

The parties have not held formal negotiations since last-ditch talks broke off in late October. The strike began November 5 amid a flurry of finger-pointing, posturing and angry rhetoric on both sides.

Experts say production on most prime-time shows will come to a standstill by the end of November, and development of new shows will soon be in disarray unless the strike is settled.

FilmL.A. Inc., a nonprofit group that handles production permits for the city, estimates the TV industry stands to lose $21.3 million a day from shutdowns of 65 prime-time broadcast and cable shows that are shot in the Los Angeles area.

Those shows – 44 one-hour dramas and 21 half-hour sitcoms – collectively employ well over 10,000 people whose loss of income will ripple through the local economy, FilmL.A. President Steve MacDonald said.

"Those are 10,000 people who aren’t getting paid, so they aren’t spending money like they normally do in their communities," he told Reuters.

Those 65 series account for at least 80 percent of all prime-time scripted programs produced nationwide, he said. Not included are dozens of late-night shows, soap operas and daytime talk shows that also are affected by the strike.

The Hollywood Reporter forecast more dire consequences for the industry that generates $80 million a day directly for the Los Angeles economy. The newspaper forecasts at least 33,000 workers could be idle by early next month under a strike.

A 1988 WGA walkout lasted 22 weeks and cost roughly $500 million in the Los Angeles area alone. Economists said 19,000 TV and film jobs were lost in the first month of that strike.

Jack Kyser, chief economist for the Los Angeles Economic Development Corp., said losses already extend beyond those directly impacted by the strike with restaurants, dry cleaners, car services and other businesses feeling the pinch.

<font size=1>Source: Reuters</font>

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Your email address will not be published. Required fields are marked *

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