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Hollywood strikers close to deal

Informal talks between representatives of Hollywood's striking writers and production companies have eliminated the major roadblocks to a new contract, which could lead to a tentative deal as early as this week, according to people who were briefed on the situation but requested anonymity because they were not authorized to speak.

The agreement could come without renewed formal negotiations between the television and movie writers and the Alliance of Motion Picture and Television Producers, though both sides still need to agree on specific language of key provisions. If that goes smoothly, a deal may be presented to the governing boards of the striking Writers Guild of America West and Writers Guild of America East by the end of this week.

The breakthrough occurred on Friday after two weeks of closed-door discussions. Even if approved by leaders of the guilds, a deal would require ratification by a majority of the more than 10,000 active guild members.

Writers walked out Nov. 5 after failing to reach a contract with producers in months of difficult bargaining. Talks resumed in December, but quickly broke off. The latest round came more than two weeks ago in the wake of a tentative contract agreement between producers and the Directors Guild of America.

That deal confronted many of the same issues that have troubled writers -- including pay for digital distribution of shows and movies -- and paved the way for Friday's movement.

A final sticking point had been compensation for advertisement-supported TV programs that are streamed over the Internet after their initial broadcast.

Companies were seeking a period in which they could stream such shows without paying a residual and wanted to peg payments for a year of streaming at the US$1,200 level established in the directors' contract.

Writers were seeking 1.2 percent of the distributors' revenue from such streams. How the issue was resolved remained unclear.

The talks were made particularly difficult by strong cross-currents in the guilds.

Some members favored a rapid settlement along lines established by the directors, whose tentative deal made large gains in the area of digital media but stipulated that new pay schedules could not be regarded as final because the markets were still not mature.

Other writers argued that a much bigger step was required immediately.

The producers' side was represented at the informal sessions by Walt Disney Co chief executive Robert Iger, News Corp president Peter Chernin, and CBS Corp chief executive Leslie Moonves.

Writers were represented by West Coast guild president Patric Verrone, David Young, its executive director, and John Bowman, who heads the guilds' negotiating committee. Alan Wertheimer, a prominent entertainment lawyer, also worked with the writers.

Even if the writers and producers hammer out a final agreement, there is no guarantee that there will be an end to the labor strife in Hollywood.

The companies' contract with actors expires on June 30 and leaders of the Screen Actors Guild -- a staunch ally of writers throughout the strike -- have said they did not expect to begin negotiations early.
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