Recession, Post-Strike Blues Grip Hollywood

from Variety.com:

TV industry feeling brunt of WGA woes

By JOSEF ADALIAN

The wave of euphoria that swept over Hollywood following the end of the WGA strike has been replaced by a whole new set of emotions: anxiety, depression, fear, nervousness -- and anger.

One month after scribes put down their pickets, a March malaise has set in, with folks in town wondering when -- or if -- things will get back to "normal."

There are significantly fewer TV pilots, budgets for series are being cut back, feature films are being put on hold in fear of a SAG walkout, and the shifts in the TV and film skeds have meant either accelerated workloads or prolonged unemployment.

And all this is occurring as everyone is feeling the pinch of an overall economy that’s in or heading into recession.

On the TV side, dramatically fewer pilots are in production compared to most years, resulting in reduced employment for helmers and thesps already hit hard by the WGA strike. Many of those pilots that have been picked up are being hastily assembled to be ready for the May upfronts, creating extra stress and pressure for scribes and development execs.

Meanwhile, to make up for revenues lost during the strike, networks and studios are holding onto each penny as if it were their last, cutting back on development deals and being stingy with raises. "There’s a real sense that faucets are not fully open," one scribe on a top network drama said.

On the film front, the mood is a bit less glum, with reports of brisk business in the spec and book markets, as well as numerous projects just waiting to be cleared for takeoff.

What’s more, the expected flurry of post-strike films are in a holding pattern -- in part because fear of a SAG walkout this summer is causing execs to think twice about greenlights.

Thunder Road producer Basil Iwanyk said that the overall level of anxiety and stress around town is "very high," and that anyone who claims otherwise "is lying."

"Everybody is shocked there wasn’t a barrage of scripts," he said. Iwanyk, who also works in TV, said the small-screen biz is "a complete catastrophe."

As if there weren’t enough bad news, many observers worry that the meltdown of the larger U.S. economy will soon hit Hollywood hard, resulting in even tougher times. Observers cite everything from Time Warner’s downsizing of New Line to CBS supremo Leslie Moonves’ decision to ax the Eye’s annual Tavern on the Green upfront bash as evidence of the sort feeding Hollywood’s current anxiety.

Article continues at Variety.com