Hollywood’s striking writers and major studios have moved closer to bridging their divide after a week of talks, raising hopes that a new contract is within reach, the Los Angeles Times rerpots.

The parties have narrowed the gap between them in some key areas, including how much writers should earn when films and TV shows are distributed online, according to people close to the situation who insisted on anonymity because talks are confidential.

The discussions could still derail, as they did in early December, these people cautioned. The parties remain apart over how much writers should be paid when their shows are streamed online and union jurisdiction over original content created for the Internet. Moreover, relations between the two sides have been marred by distrust and near-loathing as positions hardened in both camps.

Nonetheless, there is guarded optimism on both sides that the outlines of a deal could be reached as early as this week, paving the way for formal negotiations.

Writers and studios alike face enormous pressure to cement an accord that would end the 3-month-old strike that has cost thousands of workers their jobs and the Los Angeles economy about $1.6 billion, by one estimate. If the work stoppage continues, it will upset program development for next season and spoil the Academy Awards show Feb. 24.

Talks revived last week, after studios negotiated a contract with directors in short order. The directors won terms that were superior to those offered in the writers’ previous round of negotiations.

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