Directors settle with Hollywood studios
Deal after 5 days of talks puts pressure on striking writers
Hollywood directors have reached a tentative contract deal with studios after five days of negotiations, the directors union said Thursday.
The agreement puts pressure on striking writers to end their walkout, which has lasted more than two months and idled work on dozens of TV shows.
"Two words describe this agreement — groundbreaking and substantial," said Gil Cates, chairman of the Directors Guild of America's negotiating committee.
"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 current rate, the guild said.
The two sides also reached agreement on residual rates for ad-supported streaming and use of clips on the internet.
Payment for programs offered on the internet is a key sticking point between the studios and the TV and film screenwriters, who have been on strike since Nov. 5.