Globe cancellation shows that online economics doesn't add up

The cancellation of the glittering ceremony that would have been the Globes and the threat to the Oscars in a few weeks time has placed the spotlight back on the strike by the writers in America.

Now in its 11th week it has led to the cancellation of many shows,the postponement of filming of a number of series such as 24 and House and serious economic threats to Los Angeles and its environs.

What the strike is essentially about is an issue that will increasingly effect all that work in the media as the transition continues to online.

It is about the rates that writers get when their works is streamed online.In a highly competitive and cost conscious market,writers are attempting to negotiate better rates when Companies release work on the Internet.

It is the same economic model problems that have been debated many times.The public are unwilling to pay for viewing or reading things online.Advertising has not ( and may not ever) bridge the gap due to the loss of income.Costs must therefore be forced down and in this case,the writers are the fall guys at the end of the line.

This is already happening in the newspaper world and perhaps we will see the same events occurring in the non to distant future.