Strike Cost CA $2.1 Billion; Online Movies & TV Shows to Bring in $674M


The three-month-long Writers Guild of America strike will cost California $2.1 billion in lost output from Nov. 2007 to the end of 2008, according to a new study from the Milken Institute. Milken said the strike caused the state to lose 37,700 jobs and enter a recession.

The writers’ top-priority demand, revenue sharing for online video streaming and downloads, was met in part, with guild members agreeing to receive a flat streaming residual for two years and then 2 percent the year after that. So was the strike worth it? If you do the (somewhat) apples-to-apples math, not really. Streaming of online movies and TV shows will be worth some $674 million combined in 2009, and $1.16 billion in 2011 (by then, the WGA has to renegotiate its contract), according to estimates compiled by Milken. That’s up from $315 million for online movies and TV in 2007, back when the studios were saying there wasn’t any money in digital.



Thanks, looks like ‘monetization’ is finally coming into the online video space.
P.S. Isn’t that $315M from ‘online movies and TV’ in 2007??

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