Nov. 1 (Bloomberg) -- Hollywood writers and studios, facing the possibility of a strike for the first time in almost two decades, adjourned contract talks without reaching an agreement.

Representatives of the Writers Guild of America plan to meet today with members, according to a union statement posted on its Web site. The studios' Alliance of Motion Picture and Television Producers said discussions may resume tomorrow.

The groups have failed to agree on payments for DVD sales for writers. Walt Disney Co. and CBS Corp. may be most hurt from a walkout because of their dependence on scripted television programs for revenue, according to Lehman Brothers Holdings Inc. analyst Anthony DiClemente, who said the industry's last major strike was in 1988.

``The magnitude of that proposal alone is blocking us from making any further progress,'' the alliance said of DVDs in a statement on its Web site. ``We cannot move further as long as that issue remains on the table.''

The union is also seeking agreements on pay for downloads of home videos over the Internet and use of writers' work in digital media. In its statement, the union said the studios refused to discuss proposals on those and other matters. Both sides stopped discussions hours before the guild's contract expired at midnight Los Angeles time.

``Every issue that matters to writers, including Internet reuse, original writing for new media, DVDs, and jurisdiction, has been ignored,'' the guild said. ``This is completely unacceptable.''

Further Talks

The alliance said union officials had agreed to be in contact about the possibility of further talks. A mediator from the Federal Mediation and Conciliation Service joined the talks on Oct. 29.

In addition to the guild's 12,000 members, a strike would threaten the jobs of thousands of carpenters, electricians, truck drivers and stagehands who work for studios and independent production companies. The strike will also hurt restaurants and caterers in neighborhoods close to the studios, Jack Kyser, chief economist with the Los Angeles County Economic Development Corp., said in an interview.

Should writers strike, television networks may be affected first because they have shorter production schedules than film studios.

To contact the reporters on this story: Michael White in Los Angeles at mwhite8@bloomberg.net.

Last Updated: November 1, 2007 02:33 EDT