Strike deal looms as writers risk backlash

Hopes of an early end to the crippling 11-week-old writers' strike were raised yesterday after the Directors Guild of America reached a tentative agreement for a new three-year contract with the Hollywood studios, which includes compensation for programmes offered on the internet, the key issue for writers. There was cautious optimism that the deal might open the door to a writers' settlement in time to allow the lucrative Oscars ceremony to go ahead on February 24.

While some Hollywood observers remain unconvinced of a quick settlement, others predict a backlash from the so-far generally supportive Hollywood community if the writers' leaders don't reopen talks that broke down on December 7.

Dick Wolf, creator and executive producer of the Law & Order franchise, told the Los Angeles Times: "If the WGA rejects the basic concepts of a DGA deal, there's going to be a great deal of dissatisfaction among the membership... The bottom line here is: This town should be back to work in three weeks."

Another big-name producer, Jerry Bruckheimer, famous for his CSI: Crime Scene Investigation franchise , told the LA Times: "There is enormous pressure on everybody to settle this and move on."

After a cancelled Golden Globes ceremony, a shut-down in production of America's most popular TV shows and an estimated $1bn of losses, Hollywood is strike-weary. Even such a staunch defenders of the writers' strike as George Clooney (above) said: "I'm very pleased with the new [directors'] agreement and I hope it helps speed up the negotiations with the WGA."

If the Oscars have to be cancelled for the the first time in their 80-year history, the loss to Hollywood - in terms of profits from the worldwide broadcast, and lost promotion of the films in contention - is reckoned to be in the region of $100m.