A tentative deal between Canada's actors union and film and television producers may have been sidetracked by news that American studios are balking over internet rights.

Both sides announced Friday night they had reached a verbal agreement, subject to ratification, after a six-week strike by Canadian performers.

According to the terms of that tentative deal, actors would get a 10 per cent wage increase over three years as well as residuals on internet use.

But late last night, the actors union and the Canadian Film and Television Production Association were told by American studios — which also sit on the negotiation committee — that the clause over how to pay for performances intended for the internet was not settled.

"The message we're getting is that the deal on the internet, as far as the American studios are concerned will not be written in Canada," said Karl Pruner, head of the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) in Toronto.

Pruner says the American studios are being cautious because any internet deals in Canada could set a precedent as the studios head into negotiations with American writers, directors and actors this year.

Jeff Brinton, who speaks on behalf of Canadian producers, says he understands the studios' dilemma but also says that a final deal is very close.

"Unfortunately, we hit a hiccup in that process and we are in conversation with ACTRA to find a resolution to the hiccup."

Wages and internet rights have been the focus of the bitter conflict between Canadian actors and producers that began in October. ACTRA, which represents 21,000 performers, called a strike on Jan. 8.

The walkout began in Ontario, Quebec, Manitoba and Saskatchewan, and took effect later in other jurisdictions.

Productions that had already begun prior to Jan. 8, including CBC's Little Mosque on the Prairie and Deal or No Deal, were allowed to proceed.

The city of Toronto lost at least two feature movie projects and as much as $400 million in lost production.