Members of the Writers Guild of America (WGA) dropped their pens yesterday after failing to reach an agreement with the networks and studios over a new contract.

It was the first strike by the union in almost 20 years.

They chose NBC headquarters at Rockefeller Center as their first target for picketing in New York.

A huge, inflated rat was displayed near the NBC headquarters as some 40 people shouted, "No contract, no shows!"

In Los Angeles, writers were planning to picket 14 studio locations.

About 12,000 WGA members work under a contract that expired last Wednesday.

At the request of a federal mediator, writers and producers gathered for negotiations Sunday. The two sides met for nearly 11 hours but could not reach a compromise.

The main sticking point is the share writers should receive from profits of DVD sales and internet programming.

Currently, the formula is based on the home video formula created years ago when VHS and the sale of home video movies were first introduced.

That formula provides that the first 80 percent of the revenue from sale of VHS tapes (and now DVDs) goes to the cost of manufacturing and distribution, and of the remaining 20 percent, writers are awarded 1.2 percent, or about 3 cents on every VHS or DVD.

The WGA is now asking for their percentage to be based on 40 percent of the sale, and the same formula should be applied to all new media.