The actors' strike in Hollywood looked certain to be averted even as their existing contract expired at midnight on Saturday.
Talks continued yesterday with both sides indicating that agreement was near, thus averting a strike which for many had earlier predicted would start today and close down the film industry.
Talks broke off late on Saturday night when the Screen Actors Guild issued a statement saying that negotiations had been adjourned.
Agreement between the Alliance of Motion Picture and Television Producers and the actors' unions, SAG and the American Federation of Television and Radio Artists (AFTRA), has always seemed more likely since the writers' union agreed to terms on May 4th.
The slowing economy and the growth of "reality TV" are also factors that have motivated both sides to reach a deal.
The deal is likely to increase pay for lower-paid actors currently earning between $30,000 and $70,000 a year by shifting some of the pay from higher-earning actors.
The studios have complained that they are limited in their ability to pay lesser-known actors by the high fees of up to $20 million a film demanded by stars.
Minimum pay will probably rise by 3.5 per cent.