Striking Hollywood writers have rejected a new contract offer from producers, three weeks into a dispute over royalty payments.

Executives offered writers an extra $130 million over three years, but the Writers Guild of America (WGA) has described it as a "massive rollback".

It argued that studios should adopt its counter-offer instead.

The Alliance of Motion Picture and Television Producers said its offer included payments for work shown online, the key sticking points in the talks.

It said the deal would deliver "more than $130 million in additional compensation above and beyond the more than $1.3 billion writers already receive each year".

But the WGA said the proposal did not deal fully with its concerns and made a counter-offer costing a projected $151 million over three years.

Writers have been on strike since 5 November (07), disrupting films and television programs in the U.S. including hit shows Heroes, Grey's Anatomy and Desperate Housewives. Negotiations will re-commence on Tuesday (04Dec07).

(CG/WNWCCB/TN)