November 2, 2007
Hollywood Writers Say They'll Strike
Hollywood writers said they would strike for the first time in nearly 20 years but left open the door for last-minute talks to avert a crippling walkout. Associated Press reports.
... Union leaders said they would delay the action if producers showed movement in contract negotiations — especially on the key issue of paying writers when TV episodes are sold or streamed over the Internet.
The stakes are high for writers, actors and directors. While the revenue generated by Internet sales and rentals of films and TV shows is minuscule compared to DVDs, the guilds say Internet revenue eventually will become dominant.
"Every incremental window of distribution has added revenue and profitability to the business model," said Anthony DiClemente, an entertainment analyst for Lehman Brothers Equity Research. "Digital is likely to be a positive thing for the studios."
Studios argue that it is too early to know how much money they can make from offering entertainment on the Internet, cell phones, iPods and other devices."
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