Writers strike called more likely than not
Associated Press
BEVERLY HILLS, Calif. – A writers' strike that could have lasting effects on the entertainment industry appears likely, said Viacom president Mel Karmazin, whose company owns television networks and a movie studio.
"I worry about it a lot now. I think there's good reason to worry," Karmazin told the Hollywood Radio & Television Society. "There's some grave concerns there's going to be a strike."
The Writers Guild of America, whose contract expires May 1, broke off negotiations with Hollywood studios and networks earlier this month after six weeks. There is no date set for talks to resume.
Karmazin said last week that it's more probable than not that a strike will happen. The industry could face a double whammy if the Screen Actors Guild, whose contract expires July 1, also walks out.
Karmazin said he would do everything within his power to prevent a strike, but the industry operates on a slim profit margin and can't afford to meet workers' demands.
A key issue is the residuals that writers and actors receive for reruns and foreign sales of TV shows and movies.
Viacom, whose holdings include the Paramount studio, CBS, MTV and UPN, would be hit by the halt in movie and TV series production, Karmazin said. But he noted the networks could use reality series, old movies and news programs to fill the gap.
During questioning by ABC News analyst George Stephanopoulos, Karmazin discussed what he sees as Viacom's chief competition: It's not necessarily AOL Time Warner, another media giant.
"I think the biggest competition in my mind who Viacom would like to take market share away from ... on the advertising side of things would be the newspaper business," he said.
Newspapers now get the biggest chunk of the $250 billion annual advertising pie, but Karmazin said television and radio should be able to make inroads into that because of declining readership among young people.
"I'd like to see the television pie get bigger. And the way the television pie can get bigger, in part, is to take market share" from newspapers, he said.
