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Hollywood studios' trade group faces leaner budget

Tue Mar 3, 2009 5:55am GMT
 
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By Carl DiOrio

LOS ANGELES (Hollywood Reporter) - Hollywood studios have cut more than $20 million from the Motion Picture Association of America budget this year. The resulting staff and program reductions are expected to permanently shrink the scope and size of the six-studio trade and advocacy group.

Separately, the MPAA board is expected to announce soon a contract extension through summer 2010 for CEO Dan Glickman, who was rebuffed in a bid for a new multiyear pact. His current contract expires in June.

On Monday, Glickman acknowledged recent budget and staff cuts but declined to detail the moves or discuss his contract status.

"Virtually every trade association in Washington is suffering cutbacks, and it's reflective of our times," said Glickman, who was hired in 2004 to replace longtime chief Jack Valenti in the studio group's top staff position. "We're no different from those trade associations."

Those familiar with the situation said the MPAA budget has approached $100 million in each of the past several years, not including select project initiatives budgeted separately, such as a $20 million pilot initiative on European film piracy or a litigation contingency fund.

Cuts finalized in December "whacked tens of millions" from the MPAA's fiscal 2009 budget, reining in basic expenditures to about $75 million, a well-placed source said. More than half of the group's annual budget in recent years has been spent on multifaceted global efforts to combat film piracy.

PAYROLL CUTS

In a series of related moves, the 87-year-old trade organization laid off an estimated 20 percent of its staff and consultants in Los Angeles and Washington, leaving a stateside work force of about 160. Another 40 or so employees work overseas for the group's international arm, the Motion Picture Association .  Continued...

 
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