The writers’ strike is going full force and the Hollywood producers haven’t materialized for those members of the Writer’s Guild. Poor earnings could be ahead for entertainment and media stocks and exchange traded funds (ETFs), especially if this turns out to be a long strike. PowerShares Leisure and Entertainment (PEJ) is already down 5.2% year-to-date.

News Corp. (NWS), owners of Fox network, Fox News Channel, MySpace, The 20th Century Fox movie studios and various newspapers both domestic and abroad on Wednesday reported a 13% decline in earnings from a year ago, reports Seth Sutel for Associated Press. The company is looking to gain from a $5 billion deal in the acquisition of The Wall Street Journal publisher Dow Jones & Co. The acquisition won’t close until after Dec. 13, when a shareholder vote is held.

Prospects are not looking good, as Time Warner (TWX) profits fell 53%, and earnings are down  from a year ago, boosted by investment gains and tax benefits, reports Seth Sutel. The company also owns HBO, Warner Bros, CNN and Time Magazine. While PEJ does not hold NWS and TWX, they can be indicative for other companies in the industry, such as top holding CBS Corp. (CBS). The drama of the strike will be the closest to reality TV many will be watching for the time being.

Tags: Leisure & Entertainment, Media