May 7, 2008, 14:50 GMT
Los Angeles - Hollywood studios broke off talks with the Screen Actors Guild, giving rise to concerns that a second strike could hit Hollywood in less than a year.
The talks on a new contract to replace the one with the guild that expires at the end of June ended late Tuesday. The major differences between the producers and actors after three weeks of talks were what actors should be paid for shows seen online and on DVD, the two parties said.
The issue was a sticking point as well in the strike by screenwriters from November through February, which shut down production in Hollywood before the writers won higher compensation.
Directors reached a similar deal in January and a smaller actors union did the same in March for daytime and talk-show performers.
The Alliance of Motion Picture and Television Producers was putting forth a similar deal with the Screen Actors Guild (SAG), but the union, which represents 120,000 movie and television performers, is arguing for further improvements in compensation.
'Under these circumstances, with SAG's continued adherence to unreasonable demands in both new and traditional media, continuing negotiations at this time does not make sense,' the producers said.
The actors union argued that it had made numerous concessions and the studios few and it wanted to continue the talks. Guild president Alan Rosenberg called the studios decision to suspend the talks 'deeply troubling.'
'Our negotiating team is prepared to work around the clock for as long as it takes to get a fair deal,' he said. 'We want to keep the town working.'
Another strike would deal a financial blow to Hollywood, and stars such as George Clooney, Meryl Streep and Tom Hanks appeared in advertisements in movie publications in February calling for greater engagement to avoid a work stoppage.
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