Los Angeles: Hollywood directors reached a tentative contract deal with studios, a development that could turn up the pressure on striking writers to settle their 2-month-old walkout that has idled production on dozens of TV shows. The rapidly concluded directors contract could serve as an industry template for the central issue of new media compensation among other unions in Hollywood.

"Two words describe this agreement - groundbreaking and substantial," said Gil Cates, chairman of the Directors Guild of America's negotiating committee, yesterday. "There are no rollbacks of any kind."

Among other things, the agreement increases both wages and residuals for each year of the contract. It also establishes guild jurisdiction over programs produced for distribution on the Internet and sets a new residuals formula for paid Internet downloads that essentially doubles the rate currently paid by employers, the guild said.

It also establishes residual rates for ad-supported streaming and use of clips on the Internet. Payment for programs offered on the Internet are a key sticking point between the studios and striking writers.

The Writers Guild of America did not immediately respond to an e-mail request for comment on the deal. Talks between writers and the Alliance of Motion Picture and Television Producers, which represents studios, broke off December 7. The alliance said the agreement with directors establishes an important precedent.

Source : PTI