The Directors Guild of America has reached a tentative labor settlement with Hollywood Studios and Streamers that has been called “historic” by some sources. The deal, which is contingent on ratification by members, would cover film and television directors, as well as assistant directors and unit production managers, and includes increases in wages, health and pension contributions, and residuals.

According to the Hollywood Reporter, the agreement was reached after months of negotiations and “reflects the pioneering work of the DGA negotiators in securing important gains that will benefit its members for years to come.” Deadline reports that the deal also includes a provision that would see streamers paying residuals to directors for the first time, a significant development given the increasing dominance of online platforms in the industry.

Variety notes that the settlement comes at a time when the entertainment industry is facing many uncertainties, including the ongoing COVID-19 pandemic and the increasing power of streaming services. The tentative agreement is seen as a positive step towards providing stability and protection for directors and other industry workers during these difficult times.

The deal still requires approval by the DGA’s national board of directors and a vote by the membership, which is expected to take place in the coming weeks. If approved, the new three-year contract would take effect on July 1st.