Archive for February, 2008

Despite WGA (Writers Guild of America)Strike, Networks Still Come Out Ahead

Monday, February 18th, 2008

According to a recent article in the Hollywood Reporter, the Writers Guild of America strike isn’t harshly affecting TV and the networks.

Instead, the article reports that television advertisers are sticking to their guns and standing by the networks. In fact, while most advertisers had the option to back out of up to 50% of their upfront purchase in late January, few actually acted on that option.

The WGA website also claims that even if advertisers and media buyers requested their money back, it wouldn’t be a significant issue for these TV networks. In the article, MPG Senior VP Group Account Director Jason Janefsky, is quoted as saying, “The networks don’t care if advertisers exercise options or take money back. They can spin the inventory for a higher unit cost.” In other words, no skin off the networks’ backs.

Additionally, the networks are saving, from a financial standpoint, on all those cancelled writers contracts, along with the elimination of its non-writing staff. Despite the writers strike, now in its third month, the networks continue to move forward with a positive outlook and healthy hopes for the future.