Tick-tock…tick-tock. The clock has run out on the contract between the Writers’ Guild and Hollywood producers and it remains to be seen what impact this will have on entertainment and media-oriented exchange traded funds (ETFs). According to Michael Cieply of the New York Times, a strike could begin as early as Friday.

It’s a development that has been nervously anticipated and written about. Viewers will notice the effects almost immediately on soap operas and talk shows, as those shows will either be forced to go into reruns or the hosts will have to ad-lib it. Are Jon Stewart and Stephen Colbert that funny on their own? Our fingers are crossed that the answer is "yes."

The PowerShares Dynamic Leisure & Entertainment (PEJ) could bear the brunt of the fallout if a strike goes on for long. Holdings such as Walt Disney (DIS) and CBS (CBS) will no doubt be affected if movie and non-reality television production slows to a crawl.  PEJ is down 2.5% year-to-date.

The impending strike could provide enough drama to last an entire TV season, so keep an eye on it.

Tags: Leisure & Entertainment, Media