Key Points in the Settlement

CABLE TV RESIDUALS

Before: Writers have felt shortchanged as the cable TV industry has exploded. They get 2% of the license fee cable channels pay.

After: Writers received no increase in the formula when network programs are sold to cable. But they receive more money for original shows made for pay TV networks and cable channels.

FOREIGN TV RESIDUALS

Before: Writers have felt shortchanged amid a boom in sales to foreign markets. They get a one-time payment of 35% of their minimum fees.

After: The foreign formula is the same, but writers will earn a 1.2% bonus when a one-hour show sells for more than $700,000 or a half-hour program is sold for more than $350,000.

FOX NETWORK

Before: Fox pays writers one-third less than NBC, ABC and CBS on the theory that the smaller network is still developing.

After: Fox will now pay 80%, 90% next year and pay a full 100% in the last year of the contract.

VIDEO AND DVD

Before: Studios get 80 cents out of every $1 in video and DVD sales. The writers wanted a larger cut of the 1.8% split between writers and actors.

After: No change in the payment formula. But screenwriters did get a last-minute sweetener when studios agreed to pay them $5,000 per film for the right to publish screenplays on DVDs.

THE INTERNET

Before: Writers are anticipating the day when TV shows and movies are shown over the Internet; they wanted a fair payment plan in place.

After: Will continue to negotiate on “evolving” market issues, such as Internet downloads. Writers whose work first appears on the Internet will have their rights reserved if the material is later used elsewhere.

WRITERS’ CREATIVE RIGHTS

Before: Writers have long sought more input in the production process, including access to sets, dailies and test screenings.

After: Writers will have a greater role in the movie-making process, and be invited to film sets, premieres and festivals.

DIRECTORS’ CREDITS

Before: Movie writers complain that studios routinely give directors “A film by” credit, which they say directors don’t always deserve.

After: No agreement was reached. A joint committee will address the issue.

THE NEXT STEP

The contract must now be ratified by the 11,000 writers affected by the proposal. The vote is to be completed by June 4. Meanwhile, negotiations between actors and the studios could begin as early as next week. Their contract expires June 30.