Reasons the WGA Strike Will Have Costly Outcome for SoCal

The strike of the Writer's Guild in Hollywood has so far shut down some of the most successful shows in Los Angeles. On Day 3 of the strike DesperateHousewives and the Office have gone dark. Studios sent out deal canceling letters firing staff and assistants. For many families and individuals dependent on Christmas largesse from the entertainment community, it will be a quiet holiday season. The strike is voluntary.

Writers in the Guild are striking for several cents on the dollar electronic revenues. There are also deal issues for WGA signatory companies for increased DVD profit and rentals participation. The last writer's strike happened in 1988 and last 22 weeks. That strike caused financial havoc for many writers' families but also sent the local economy into a downturn. Can Los Angeles afford the Writers' Strike?

But the solidarity shown by writers, actors and producers this time around tells media that this strike will last much longer. Prominent actors such as Steve Carell have opposed coming to work and providing writing assists with improv acting work. While many industry worker strikes can stay contained in cross sections of retail buying and banking, as well as services, the worst time for the Los Angeles region to feel this impact is now.

Now is the worst time for a entertainment industry strike. Southern California has been in the flux of a fire emergency and falling credit debacle. Homes, even in good areas have caused a glut of high prices and disinterested sellers. And now just in time for the Christmas season, the WGA strike may dampen retailers expectations and business revenues through the season. Santa Clause is a stingy gift giver during strike talks.

1. Writers