Hollywood screenwriters want to benefit more from the DVD market

The Writers Guild of America (WGA) wants a 2.5% pay rise and a greater share of profits from DVD sales.

It said a current Alliance of Motion Picture and Television Producers offer fell $32.4m (�18m) short of the amount needed to prevent health benefit cuts.

But employers said the two sides "were close" to reaching agreement.

Clash

Talks resumed on Wednesday after the old three-year contract expired on Saturday, but were suspended hours later.

The Alliance of Motion Picture and Television Producers is representing the studios, while the ABC, CBS and NBC networks are also taking part in the talks.

Before talks began in April, both sides expected to clash over union requests for higher residuals - bonus payments earned by writers when their work is repeated, sold overseas or featured on DVD.

The WGA is keen for its 11,000 members to benefit more from the booming DVD market, which generates more than $16bn (�8.9bn) worldwide per year.

'Poverty'

But the studios say DVDs help them to offset the increasing cost of making feature films.

In response the union accused studios of "pleading poverty" at a time when the entertainment industry is earning healthy profits.

Residuals were the main stumbling block in a contract agreement three years ago, when a settlement was made three days after the last contract expired.

Hollywood's writers last went on strike in a 22-day walk-out in 1988, but both sides have played down the possibility of strikes this time.