This Day In Market History: Writer Strike Cripples Hollywood

Author: Elizabeth Balboa | November 05, 2021 10:01am

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened: On Nov. 5, 2007, the Writers Guild of America brought Hollywood to a halt with a strike that would last months.

Where The Market Was: The S&P 500 closed at 1,502.17, and the Dow Jones Industrial Average closed at 13,543.40.

What Else Was Going On In The World: The same day, Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) introduced its Android operating system, which wouldn’t be available for another year. “American Gangster” and “Bee Movie” led the box office.

Writers Ink Hollywood Tragedy: Until Feb. 12, 2008, the labor organizations representing film, TV and radio writers protested unfavorable terms with the Alliance of Motion Picture and Television Producers. Writers were demanding a larger share of DVD and streaming revenues.

During the strike, production on more than 60 shows shut down, with late-night talk shows rolling into reruns and primetime comedies and dramas burning through their backlog of fresh episodes.

The strike disrupted the likes of CBS Corporation (NYSE:CBS), Comcast Corporation (NASDAQ:CMCSA)’s NBC Universal, Walt Disney Co (NYSE:DIS), Viacom, Inc. (NASDAQ:VIAB)’s Paramount Pictures, Sony Corp (NYSE:SNE), MGM, Warner Bros — now owned by AT&T Inc. (NYSE:T) — and News Corp (NASDAQ:NWSA).

Leaders of the WGA and AMPTP tentatively settled Feb. 12 and officially approved a new, three-year contract on Feb. 26 — nearly four months after the strike began. The writers returned to work, leaving Los Angeles to clean up a $3-billion economic loss.

Photo: Mateusz Kudla/Wikimedia. 

Posted In: CBS CMCSA DIS GOOG GOOGL NWSA SNE T VIAB