Writers strike over internet profits

Hollywood writers have begun a strike over what they see as unfairness concerning their share of internet and DVD profits.

Last-minute talks failed to establish an agreement between writers and studios and both the New York and Los Angeles chapters of the Writers Guild of America decided to strike. Studio bosses maintain that the writers' demands are disproportionate and would affect the development of new media. Patric Verrone, president of the western chapter of the guild, was quoted by the Associated Press as saying: "The studios made it clear that they would rather shut down this town than reach a fair and reasonable deal."

This is the first time in two decades that Hollywood writers have taken strike action. Film and television production are both threatened by the strike. In 1988 writers went on strike for 22 weeks, which ended up costing the film and television industry approximately $500 million.