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Directors Guild, Hollywood Studios Reach Deal

By Rich King on January 16, 2008

Tim Robbins picture

HOLLYWOOD, Calif. — Hollywood directors announced a tentative agreement with production companies on Thursday, a move that will likely increase efforts to settle a 10-week-old writers' strike that has crippled the industry.

The tentative three-year labor deal with the Directors Guild of America (DGA) includes provisions to increase pay for union members on work distributed over the Internet, which has been a key sticking point in the stalled contract talks with Hollywood writers. The writers' strike began November 5, with talks breaking off on December 7.

"We hope that the DGA's tentative agreement will be a step forward in our effort to negotiate an agreement that is in the best interests of all writers," the writers guild said in a statement.

In announcing the deal with directors, the Alliance of Motion Picture and Television Producers (AMPTP), which represents the studios, expressed hope that the deal would help resolve the writers' strike.

The AMPTP said: "The agreement demonstrates beyond any doubt that our industry's producers are willing and able to work with the creators of entertainment content to establish fair and flexible rules for this fast-changing marketplace."

"Today, we invite the Writers Guild of America to engage with us in a series of informal discussions similar to the productive process that led us to a deal with the DGA to determine whether there is a reasonable basis for returning to formal bargaining," the producers' alliance added.

Hollywood writers walked off the job when the producers association rejected their demands for a greater share of profits from Internet and new media sales.

Because of the writers' strike, last weekend's Golden Globes awards were announced at a press conference instead of the usual star-studded ceremony.

Should the strike continue, it could threaten to derail the Oscars, which are scheduled to take place on February 24.

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