Entertainment

Hollywood Fears Writers Strike

By CBSNews.com staff CBSNews.com staff

April 22, 2001 / 7:47 PM EDT / CBS

The hit TV drama Beverly Hills 90210 made one of its head writers successful and financially secure, but Chip Johanassen tells CBS News Correspondent Sandra Hughes life in Hollywood isn't always so good — in fact, for most struggling writers, it's paycheck to paycheck.

Contracts covering TV and movie writers expire May 1, and representatives of the Writers Guild of America and the Alliance of Motion Picture & Television Producers resumed negotiations this past week after breaking off talks in March.

"For a lot of people who are either starting out in the WGA that or are kind of a year or two into the process the script fees and the residual fees are extremely important to your livelihood," Johanassen said.

Residuals are monies paid to writers each time a show they write airs, and they contend the residuals aren't enough. If the writers strike, every TV and movie studio in Hollywood would be effected.

"I think there are legitimate issues on both sides the writers want to be treated fairly and they want to be compensated for participation," said Hollywood Reporter editor-in-chief Robert J. Dowling. "The Studios realize how expensive the business has become and there is little profit to be made by it."

But it's not just Hollywood writers who are threatening to strike: two months after the writer's contract expires, so does the screen actor's guild, which is battling over similar issues. The two strikes combined could be economically devastating to Los Angeles.

"Make no mistake about it," warned mayor Richard Riordan last Friday. "A prolonged strike could plunge our city and our county into recession."

A newly released study finds the city of Los Angeles could lose billions of dollars in revenue, and the unemployment rate would jump two percentage points with a prolonged strike by both unions.

Networks are scrambling to create more reality based TV shows like "Survivor." Movies already in production would finish, but if the strike continued for a few months there would be a lot of reruns on TV, and no new big studio movies by Christmas.

"I think there'll be a lot of casualties if there's a strike," said Johanassen. "A lot of projects that are just getting going will fall apart and never come back."