Golden Globes Statue: Dave Bjerke
EW Staff
January 08, 2008 AT 05:00 AM EST

(FROM VARIETY) – The cancellation of this year’s Golden Globes gala dinner and live telecast in favor of an hourlong newscast announcing winners will cost Hollywood’s local economy upwards of $80 million, according to the Los Angeles County Economic Development Corp. NBC, which was to air the live Globes ceremony, stands to lose the most. The Peacock typically pulls in $15-$20 million in ad revenue by airing the three-hour ceremony. This year, the network will have to settle for just one hour at a lower rate for the newscast, which will presumably draw lower ratings.

Meanwhile, the Hollywood Foreign Press Association, which owns the Globes, and Dick Clark Productions, the independent production company that produces the ceremony, will have to forfeit the licensing fee paid by NBC — last year, that license carried a $5.8 million price tag. HFPA and Dick Clark Prods. also already shelled out an estimated $1-$2 million in production costs for sets, lighting, music, crews, red carpet, security, and trucks.

Costs for after-parties, which amount to anywhere from $350,000-$750,000, have mostly been paid ahead of time as well, meaning an unrecoverable loss for any cancellations. NBC Universal-Focus, HBO and Warner Bros.-InStyle parties have already been canceled and it’s likely that the Weinstein Co. and Fox-Fox Searchlight events will also get the ax. There are also a number of losses that cannot be calculated, such as film studios and networks’ inability to use the event to publicize their contenders.

Globes organizers announced on Monday that they are canceling the usual festivities this year. That move followed the Screen Actors Guild’s decision to boycott the awards ceremony if the Writers Guild of America pickets the event. If there is no resolution to writers’ strike soon, the Oscars (which take place Feb. 24) could also be in jeopardy. With Hollywood still reeling from Globes fallout, a similarly scaled-back Academy Awards show would deliver an additional $130 million hit on the local economy, according to the Los Angeles County Economic Development Corp. (Variety)

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