[Andria Hall, Cnn Anchor:] Commercial actors in Hollywood are still manning their picket lines with no indication of when their strike might end. And already, there's talk about the possibility of two more major strikes next summer that could cripple the entertainment industry. CNN Financial News' Casey Wian has the story.
[Casey Wian, Cnn Correspondent:] The pace of movie production by major studios is at an all-time high. One reason: Producers are rushing to finish as many pictures as possible now, because by early next summer, two strikes could shut down Hollywood. The Writers Guild's contract expires in May, film and TV actors' in July.
[Nicholas Counter, Alliance Of Motion Picture & Tv Producers:] Our bottom line is: We're preparing for the worst and we're hoping for the best. In other words, we if we're well prepared, we think we'll ultimately make a deal without a strike.
[Wian:] The last time Hollywood faced a major labor stoppage was in 1980. Since then, the U.S. entertainment industry has gone global and digital, creating new distribution channels. While producers are trying to hold down rising costs, unions say they're not being paid enough for work sold in those new markets. The ongoing commercial actors strike over similar issues may be a preview.
[Michael Mahern, Writers Guild Of America:] It has sent the message to management that the actors are capable of taking a strike. Four or five months ago, the general thought around this town is that the actors couldn't pull off a successful strike.
[Wian:] Hollywood's union activists have become more militant and more determined.
[Susan Sarandon, Actress:] It's really important to take a stance that's a just stance now, because what happened with cable in the past, you know, we just, kind of, let it slide, underestimating what was going to happen. And we can't do that again for other issues in the future.
[Wian:] Caught in the middle, are people like Lyle Waggoner, a former actor whose company builds and rents trailers for movie and television productions.
[Lyle Waggoner, Star Waggons:] The impact would be devastating. I have a crew of 50 here and I don't want to lay them off. Whatever I could do to keep them, if, eventually, I had to lay them off because the strike went on too long, then that's what I'd have to do.
[Wian:] Some argue studios may take a hard line because many would save money during a strike.
[Jeffrey Logsdon, W.r. Hambrecht:] I think half the studios lose money on current production. But arguably, I mean, if you're a Walt Disney company and you lose a couple hundred million dollars a year or more in live-action films, if you shut down production, I don't know, maybe you want to have a victory celebration.
[Wian:] TV networks may also be reluctant to settle because a strike would come while actors are on summer hiatus. Plus, the public's appetite for so-called realty shows reduces the need for union talent. [on camera]: But a strike lasting three months or longer would start to squeeze Hollywood's bottom line. And that's not out of the question. The commercial actors' strike is about to enter its sixth month. Casey Wian, CNN Financial News, Los Angeles.