LOS ANGELES, Dec. 9 (UPI) -- Negotiations between studio executives and the Writers Guild of America collapsed in Los Angeles leaving the industry's economic outlook bleak.

The 5-week-long strike by the Writers Guild of America over revenue generated from new media has forced the postponement or recasting of several motion pictures and shut down several prime time television shows, such as "The Tonight Show with Jay Leno" and "The Daily Show with Jon Stewart."

The strike also threatens production of this year's Hollywood awards ceremonies, the Golden Globes, the Grammys and the People's Choice Awards, the Los Angeles Times said Sunday.

The prolonged strike threatens to cost television networks hundreds of millions of dollars in lost revenue generated from advertising, as corporate executives flee the major networks in the face of declining viewers.

One media analyst told the Times revenue losses may approach $600 million if the strike continues into next year.

This level of loss threatens the overall economic outlook for the Los Angeles area, which relies on the entertainment industry to provide nearly $30 billion annually to the Los Angeles economy.