According to an article in the Hollywood Reporter, the cost of the WGA strike on the local Los Angeles economy is estimated at $2 billion. This is four times the number of the 1988 strike, which lasted six weeks longer.All this information assumes the strike will end Tuesday when the contract terms are put to general vote. It's a likely assumption.
I've been to L.A. and it's pretty much a one-industry town (yes, I'm referring to the entertainment industry). When every other industry revolves around that one, a strike hits pretty hard.
I do wonder how the Los Angeles Economic Development Corp estimated that number. Did they tally last year's receipts for the town and estimated the difference? If so, did they take things like inflation or depreciation into account? Why is the spending on caterers, florists, etc. so much more than the actual production values? Is that why the majority of stuff produced by Hollywood is so crap?
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Reader Comments (Page 1 of 1)
2-11-2008 @ 12:42PM
MacGuffin said...
You should read the recent article in LA Magazine about the strike. http://www.lamag.com/ME2/dirmod.asp?sid=14D5B253DB1D499F9AD38F459D8E926A&nm=&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=A031965C9A724C7B84ADC17C210358C4
Los Angeles is not the one industry town that everyone thinks it is; in fact, 'entertainment' only comprises 5% of the $380 billion GDP of LA County.
And the real impact of the strike is probably MUCH less than $2 billion commonly reported. A lot of production was moved up to put more in the can in anticipation of the strike.
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2-11-2008 @ 1:23PM
Liz said...
I've lived and worked in LA my entire life and I have to agree with the above commenter- calling LA a one-industry town is ridiculous.
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2-11-2008 @ 2:48PM
smokeyanthony said...
We can't forget to adjust for inflation ('88 dollars vs. '08 dollars).
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2-11-2008 @ 3:49PM
The Pepto Pimp said...
Yeah, I'm another Los Angeleno.
Brad, calling Los Angeles a one industry town just makes you look narrow minded. Maybe all of your "hipster" friends work in or support the "entertainment" industry, but that doesn't mean it's the only fish in the LA sea.
Don't forget, Los Angeles is the home of the Port of Los Angeles, the busiest sea port in the United States, according to a 2006 study by the American Assosciation of Port Authorities.
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2-12-2008 @ 7:25AM
Kevin said...
So, since you've "been" to LA, that makes you qualified to call it a one-industry town? Idiocy. I've been to London, does that mean I can say their only industry is pubs?
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2-12-2008 @ 8:45AM
I miss my stars! said...
2 Billion? You think maybe they are exaggerating for dramatic effect?
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2-12-2008 @ 11:22AM
Deb Shiner said...
I am glad that they came to an agreement as with rising cost they deserve to be brought up to the level of income in a competitve world. Also I would like to ask can they reload some new reruns cause we have seen the Law& Order ones over 30 million times I realize this would include writting new closed captioned series but certainly there are newer reruns than what we have been viewing!
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