Actors, Studios Agree on Contract

Actors and Hollywood’s major entertainment companies reached agreement on a three-year contract late Thursday, averting a production slowdown that could have started as early as this month.

Under the $200-million pact, actors’ pay is increased across the board, but they do not gain a bigger share of studio DVD revenue.

Although the contract did not expire until June 30, actors and producers feared that uncertainty over a possible strike might cause studios to start shelving upcoming projects in the next two weeks. Because films require months to prepare, studios are often reluctant to begin production if there is a slight chance that they may have to pull the plug on a film, a costly move.

The centerpiece of the agreement gained by the Screen Actors Guild and the American Federation of Television & Radio Artists is a 9% raise over three years for 140,000 performers, from film and TV actors to dancers. Members must ratify the deal.

Other benefits included a boost in health and pension contributions, as well as increased residuals for performers on WB and UPN networks and for actors in programs on pay television networks.

Studios represented by the Alliance of Motion Picture & Television Producers had conveyed to actors’ negotiators that they would be willing to absorb a strike rather than budge on the DVD issue.