Directors Union Reaches Tentative Contract Deal With Hollywood Studios

LOS ANGELES (AP) — The Hollywood directors union says it has reached a tentative contract deal with studios after five days of negotiations.

The agreement puts pressure on striking writers to end their walkout. It has lasted more than two months and idled work on dozens of TV shows.

The Directors Guild of America says 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.

It also establishes 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 striking writers.