The Screen Actors Guild and Hollywood producers have started talks on a new contract that a wary entertainment industry hopes will be achieved without a strike.

A person familiar with the situation said the talks began Tuesday. The person was not authorized to comment and requested anonymity.

The guild, which represents 120,000 members, and the Alliance of Motion Picture and Television Producers are negotiating a new three-year deal covering movies and prime-time television.

Improved compensation for shows and movies distributed online is a key issue in the actors negotiations, as it was for the Writers Guild of America during its 100-day strike.

That walkout shut down most TV shows and took a heavy toll on the Los Angeles area economy.