Directors Reach Deal With Hollywood Studios

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.

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."