Representatives of Hollywood studios and striking writers have negotiated a breakthrough in contract talks that could lead to a tentative deal as early as next week, a person close to the proceeding said Saturday.

The two sides bridged the gap Friday on the thorniest issues, those concerning compensation for projects distributed via the Internet, said the person, who requested anonymity because he was not authorized to speak publicly.

A second person familiar with the talks, also speaking on condition of anonymity because he wasn't authorized to comment publicly, said significant progress had been made and a deal might be announced within a week.

The people did not provide specific details on the possible agreement. Major points of contention include how much and when writers are paid for projects delivered online after they've been broadcast on TV.

The studios have been insisting that programs be streamed online for a certain period, deemed promotional, during which writers would forgo residuals. When payment kicked in, the companies sought to limit it to a flat US$1,200 fee, while the guild wanted a percentage of a distributor's revenue.

The Writers Guild of America did not immediately reply to a request for comment. The Alliance of Motion Picture and Television Producers, the trade group representing the studios, declined comment, citing a news blackout agreed to by both sides during the talks.

(Agencies via Xinhua February 3, 2008)