Tuesday, October 6, 2009

You Know Times Are Tough When . . .

The L. A. Times tells you Hollywood's got it bad:

Hollywood studios in midst of their own horror show:

The recent firings and hirings of studio executives at Disney, Universal and elsewhere point to a widespread corporate panic amid sharp declines in DVD sales.

Read on:

Hollywood's biggest slasher story isn't playing at any theater near you. It's hitting the industry's corporate suites, where the sacking of studio executives has reached epidemic level. . .

It used to be that Hollywood's corporate parents could stomach a dry spell from their studio managers. But as DVD sales have collapsed by as much as 25% at some studios, access to outside financing has vanished and production and marketing costs remain sky-high, media companies are cracking under all the pressure. . .

"It does something radical to an industry when $12 billion to $14 billion suddenly goes away," said Gill. "That places an enormous strain on the system. And nothing is replacing it. It used to be 'let's get the Germans' and then the Germans went away, so it was 'let's get the Japanese' or 'let's get the insurance companies.' There was always going to be somebody else. Now it looks like it's not going to be someone else."

It's still the same old story:

When times were flush, the studios spent like sailors on shore leave, handing out lavish producer deals, flying private jets, adding millions in overhead (including their own compensation) . . .

ESPECIALLY their own compensation. (Remember that it is the hometown paper reporting.) The excesses of the bubble were widespread.

Couldn't happen to a nicer bunch of child rapists and defenders thereof.

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