According to an economic study, the Writers Guild of America strike cost Los Angeles County $2.5 billion. That’s significantly less than the $3 billion to $5 billion experts originally thought.
The strike against the Alliance of Motion Picture and Television Producers started Nov. 5 and ended last week. During the work stoppage, most scripted television shows were shut down and several film productions placed on hold.
The guild may seek to make up the shortfall in DVD sales. Sales remain low this year, after suffering a steep 3.4 percent drop last year to $16 billion.
Chief economist for the Los Angeles County Economic Development Corp., Jack Kyser, stated that the financial loss was huge at $2.5 billion.
The amount includes lost salaries from television shows, movie productions, as well as support services such as drivers, florists, and others.
Time will tell how the strike hit the overall Los Angeles economy in the first quarter of 2008 — and how long it will take region and the industry to recover.
The strike was settled last week when representatives of the writers guild and the major studios agreed on a three-year deal that meets one of the writers’ main demands - a share of the revenues when their work is distributed over the internet or mobile phones.