Writers are demanding payment for TV shows and films sold online
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The board of the Directors Guild of America has voted unanimously to recommend approval of a contract deal with Hollywood film and TV studios.
The agreement includes a deal on royalties on internet downloads which, in effect, doubles the rates directors currently get.
The union's 13,500 members will now vote on the new contract.
Studios hope the agreement will put pressure on striking US writers to end their 12-week walkout.
"This has been a great achievement for the DGA. Ten days ago we reached a tentative agreement with the studios and today the Board approved it unanimously," DGA president Michael Apted said in a statement.
"We achieved our three primary goals: jurisdiction in new media, which was absolutely essential; compensation for the use and reuse of our work in new media; and significant gains on issues of real importance for our work in traditional media."
The deal between the union and the Alliance of Motion Picture and Television Producers has also been praised by studio executives.
The issue of royalties for internet distribution has been a key sticking point between striking Hollywood writers and studios, who broke off talks in December.
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