Hollywood writers strike as talks fail - The studios and the guild prepare for a long work stoppage. They remain far apart on Internet residuals.

Despite the aid of a federal mediator and back-channel talks between top writers and studio executives, the sides were ultimately too far apart to bridge the massive divide between them and avert the first writers strike in nearly two decades.

After three months of contentious negotiations, talks broke down Wednesday night when the writers' three-year contract expired. Although they made minimal headway on some issues Sunday, the parties could not come to terms on such key issues as how much writers are paid when their shows are sold online.

The question now is no longer whether or when they will strike, but how long a walkout will last and how much pain it will inflict.

Both sides are girding for what many believe will be a long and debilitating strike, potentially more disruptive than the 22-week walkout by writers in 1988, which cost the entertainment industry an estimated $500 million.

"Once it starts, it's going to get ugly," said one of the guild's strike captains Sunday.

A strike doesn't necessarily preclude the writers and producers from continuing to negotiate on a new contract and could even accelerate that process as both sides try to minimize the financial toll it could take.

Negotiators for the Writers Guild of America and the Alliance of Motion Picture and Television Producers spent more than 10 hours in talks at Sofitel hotel in West Hollywood. At 9:30 p.m., writers guild officials walked out of the meeting.

"It is unfortunate that they choose to take this irresponsible action," alliance President Nick Counter said.

The guild said that although the union had agreed to withdraw its proposal to double DVD pay, which had been a stumbling block in negotiations, producers refused to make concessions in other key areas. Among other things, producers refused to grant the union jurisdiction for most new-media writing, the guild said. They also insisted on a proposal that would allow them to reuse movies or TV shows on any platform for promotional purposes with no residual payment.

"This proposal alone destroys residuals," the guild said.

Sunday's talks marked the most substantial meeting since the parties began protracted negotiations this summer, raising a glimmer of hope that a deal might be within reach.