Are the Studios Committing Suicide?

Assume the writer's strike lasts for way longer than anyone wants - say 6 months. Is that enough time for crafty producers with access to money to start making material exclusive for the internet? Will audiences start to watch new material on the internet as a primarily source vs. a promotion? Will cell phone downloads become of sufficient quality that audiences will start paying to watch stuff on download?

From the creative standpoint, it's going to be the same story. Good ideas, well executed will be watched. The creative process will change very little, I imagine. It'll still be about story, performance, set pieces, humor, etc, etc.

What if the studios miss out on this game? What if different media companies get smarter, figure out a profit model, and woo the talent and creatives away from the studios. What do the studios offer to creatives? A system to monetize their talent through relationships with advertisers, theater chains, and dvd rentals/sales. It is a fairly good system.

But what happens when someone else offers a competing business model for creatives? What if it works better and makes more money? The studios are left with a library of old material, which is incredibly valuable, but what about the new material?

This is how the studios could be punished. The writer's are already being punished by losing wages and the consequent uncertainty afterwards...will they get hired again? Will the gains (if there are any) on residuals outweigh the lost wages?

Strikes very rarely benefit either side - they are a lose-lose proposal. This is coming from my dad who is a labor lawyer and represents unions and has seen strikes before. Couple that with the uncertainty of the internet impact on the movie and tv business and none of this bodes well...for anyone...except the competition.