Directors, Hollywood studios reach deal

Hollywood directors reached a tentative contract deal Thursday with studios, a development that could turn up the pressure on striking writers to settle their 2-month-old walkout that has crippled the entertainment industry.

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

Among other things, the three-year agreement establishes key provisions involving compensation for programs offered on the Internet.

That issue has been a key sticking point between striking writers and the studios, which broke off talks on Dec. 7.

The writers walkout has halted work on dozens of TV shows, disrupted movie production, turned the glitzy Golden Globes show into a news conference and threatened the upcoming Academy Awards ceremony.

The deal between directors and the Alliance of Motion Picture and Television Producers, which represents studios, was lauded by top executives from eight major companies, including Fox, Paramount Pictures Corp., The Walt Disney Co., CBS Corp., Sony Pictures Entertainment, Warner Bros., MGM and NBC Universal.

In a joint statement, the executives said they hoped the agreement would signal the end of an "extremely difficult period for our industry."

They called on the writers guild to join in the kind of informal talks with industry leaders that preceded the directors' negotiations, and said the deal with directors established a precedent for the industry's creative talent to "participate financially in every emerging area of new media."

The Writers Guild of America said it would evaluate the terms of the directors' proposed contract. The guild also reiterated that it has been calling on the studios to resume negotiations.

"We've been making independent deals, so we're in a negotiating mood," said Writers Guild of America, West, President Patric Verrone, referring to interim agreements the guild has reached with companies such as United Artists and The Weinstein Co.

Verrone declined to comment on specifics of the deal by directors or compare it to what the writers are seeking until he saw a copy of the proposed contract, which he expected to receive from the directors guild.

Writers previously said directors do not represent their interests.