Writers Guild West President Patric M. Verrone leaves the podium after announcing the end of the writers' strike
© AFP Robyn Beck

LOS ANGELES (AFP) - Writers Guild of America (WGA) West leader Patric Verrone said members had voted overwhelmingly to end the strike, with 92.5 percent in favor following ballots conducted in Los Angeles and New York.

"The strike is over. Our membership has voted and writers can go back to work," said Verrone.

The vote had been seen as a formality after WGA members voiced widespread support for a new contract presented to them by union leaders at the weekend. A second vote to ratify the contract will be held on February 25.

Writers downed tools on November 5, a move that sent shockwaves through the industry, forcing the postponement or cancellation of several television shows and movies, and causing hundreds of millions of dollars in losses.

Previous contract talks between the WGA and the Alliance of Motion Picture and Television Producers (AMPTP) collapsed over the issue of payment for content broadcast free or bought over the Internet.

Members of the Writers Guild of America, West (WGA) cast their ballots
© AFP/Pool Rick Loomis

However a breakthrough in negotiations saw the WGA reach a tentative agreement with producers and a proposed new deal received enthusiastic backing after it was tabled to writers on Saturday.

The new deal establishes a scale of royalty payments for writers whose work is sold over the Internet or streamed for free. Previously writers received nothing for online sales.

Industry analysts say the deal is important because traditional DVD and home video rental markets will eventually be rendered obsolete as technology allowing for Internet content to be seen on television becomes more widespread.

"This was not a strike we wanted, but one we had to conduct in order to win jurisdiction and establish appropriate residuals for writing in new media and on the Internet," Verrone said.

"Those advances now give us a foothold in the digital age."

A joint statement from the chiefs of eight major studios -- including NCB Universal, CBS, Warner Bros, Disney -- welcomed the end of the strike.

"This is a day of relief and optimism for everyone in the entertainment industry," the statement said.

Members of the Writers Guild of America, West (WGA) cast their ballots
© AFP/Pool Rick Loomis

"The strike has been extraordinarily difficult for all of us, but the hardest hit of all have been the many thousands of businesses, workers and families that are economically dependent on our industry."

The writers strike has been one of the longest and most damaging in the entertainment industry's history, with losses estimated at 2 billion dollars according to the Los Angeles Economic Development Corporation (LAEDC).

According to LAEDC figures, the strike cost an estimated 733 million dollars in lost film and television production spending.

But the LAEDC said an estimated 1.3 billion was lost by companies such as caterers, hoteliers and limousine rental firms that rely heavily on the entertainment industry for business.

"There have been very significant losses for companies that rely on seasonal work. They have lost 14 weeks worth of business," said Jason Squire, a lecturer at USC's School of Cinematic Arts and editor of "The Movie Business."

"That is a dreadful and damaging impact for smaller companies."

The strike has also severely disrupted Hollywood's awards season, leading to the cancellation of the Golden Globes awards after actors vowed to boycott the event, and casting a shadow over preparations for the February 24 Oscars.

©AFP