In this morning's news, we learn that at the eleventh hour, the WGA dropped a key demand in the negotiations--namely, the demand to increase their share of DVD sales from .3% to .6% (that extra "four cents" you keep hearing about).
A last-day effort to reach a new work agreement collapsed Sunday night despite a major concession by the writers as they dropped their demand for a doubling of how much they are paid for DVD sales. This had been considered the major stumbling block to a deal.
The AMPTP refuses steadfastly to compromise on permanent downloads because they know that it's the future. If you needed any further proof that this strike isn't by a bunch of rich whining writers who want more DVD revenue, now you have it.
The DVD demand was dropped. But there was no concession by the AMPTP on downloading.