May 28 (Bloomberg) -- Hollywood studios and one actors union reached a tentative labor agreement for prime-time television shows, making it less likely a strike will halt production for the second time in a year.

The American Federation of Television and Radio Artists and the studios' Alliance of Motion Picture and Television Producers agreed on a three-year contract that provides wage increases and payments for work used on the Internet, both sides said today in separate statements.

The accord, subject to approval by Aftra's board and membership, comes on the same day that the larger Screen Actors Guild resumed negotiations with studios. Those talks broke down May 6 after three weeks of meetings failed to end differences over DVD and Internet pay rates.

``An Aftra agreement puts a lot of pressure on SAG and its leadership,'' Steve Diamond, a professor of entertainment and labor law at Santa Clara University School of Law, in Santa Clara, California, said in an interview before the announcement. ``They may have to back down from some of their demands.''

Aftra has 70,000 members and jurisdiction over talk shows, daytime soap operas and a few prime-time scripted programs such as ``Cashmere Mafia'' and ``Curb Your Enthusiasm.'' The Screen Actors Guild's 120,000 members perform in movies and prime-time comedies and dramas. About 40,000 actors belong to both unions, which had jointly negotiated agreements for film and prime-time TV performers since 1981. The current contract expires June 30.

New Terms

Under terms of the new deal, Aftra members will get jurisdiction over programming made for the Internet and other new media. The agreements on new media are patterned after contracts already reached by writers and directors.

Aftra members will also keep their right to consent to the use of their work online, an issue the union cited as an obstacle in negotiations last week. The accord doesn't include gains in DVD residuals.

``This is a challenging time in the entertainment industry and this was a tough negotiation,'' Roberta Reardon, Aftra's national president, said in the statement. ``We recognized the hard realities currently affecting the traditional TV business and we focused on creating a framework that would allow union members to participate fully in the emerging new media marketplace.''

Members will get a wage increase of at least 3.5 percent on July 1, followed by 3 percent and 3.5 percent boosts, respectively, the two following years.

Members of the Alliance of Motion Picture and Television Producers include Time Warner Inc., Walt Disney Co., News Corp., General Electric Co.'s NBC Universal, Viacom Inc., CBS Corp., Sony Corp. and Metro-Goldwyn-Mayer Inc.

`All Actors'

The agreement ``makes the new media framework work for all actors,'' the alliance said today in an e-mailed statement.

The Screen Actors Guild originally sought to double DVD payments to $1 billion over the three years of the new contract and almost triple wages in some cases, according to a statement posted by the alliance on its Web site April 30. The union also wanted more money for the use of actors' work on the Internet.

Leaders of the guild reduced their demands this month on DVDs, asking for an increase of about 15 percent, executive director Doug Allen said in a May 6 interview.

The Screen Actors Guild resumed negotiations with the studios today in Los Angeles, alliance spokesman Jesse Hiestand said in an e-mail. The union said it will review Aftra's contract.

Members of the Writers Guild of America walked off their jobs in November and returned to work in February after winning increases in Internet compensation. The Directors Guild of America reached a similar agreement with the alliance in January. Aftra reached a preliminary agreement for daytime soap operas and talk shows in March.

To contact the reporter on this story: Michael White in Los Angeles at mwhite8@bloomberg.net; To contact the reporter on this story: Sarah Rabil in New York at srabil@bloomberg.net

Last Updated: May 28, 2008 13:34 EDT