Hollywood,USA also Caught Up in the Financial Crisis

For some people, there was a thought that the movie industry in Hollywood wouldn't get hit by the financial crisis. It turns out that the industry got hit quite hard. Banks aren't so confident to lend producers sums of money for months.

While income from theaters nationally decreased, the income from DVD sales aren't good either.The problem got more complicated when the Screen Actors Guild will make a strike again.

As the city of angels, LA is getting to be a more and more expensive place to produce a television series says an executive in the industry.

Other states like Illinois, Michigan and New York gave tax incentives up to 40 percent for movie or TV production. Two top serial TV had moved to New York.One is 'In Treatment'(HBO) and the other is 'Ugly Betty'(ABC). The governor ,Arnold Schwarzenegger is worried of this situation and asked the State legislators to pass the incentives.

Total box office movies produced this year was 67 less than last year.Paramount says it will only produce 20 movies per year not 25.Time Warner closed its New Line Cinema business unit.

It's been tough for the economy at Hollywood these days. (source BW)

Latest 2009 Lay Off Prediction

(BelajarEkonomi.Com)Enterprise Owner Association (Apindo) has recently revised their prediction of total lay offs in Indonesian industries. As mentioned before by it's chairman,lay offs are a must and very difficult to avoid.

Actually there are choices for company owners to deal with the crises:
1. A Salary Cut
2. Homing employees, which means only receiving basic salary and no presence and transport pay, and ..
3. The hardest choice which is Total Lay Off.

At a recent press conference, the Apindo chairman, Sofyan Wanandi said the figures would reach 1 - 1,5 million lay offs which would peak at the mid of 2009.This is above the ILO prediction of 650,000 (six hundred and fifty thousand) .

To support his statement, joined with him in the press conference was Chairman of the Textile Association, Chief of the Association of Shoemakers, Head of Food and Beverages Association, and the Motorcycle industry Association's chief.

The unemployment rate would rise 9 percent caused by this world economic crisis.

(Source : PR)