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Hollywood actors reached a tentative agreement with major studios on Wednesday to resolve the second of two strikes that rocked the entertainment industry as writers and performers demanded higher pay in the streaming TV era, Reuters reported.

The 118-day work stoppage will end officially just after midnight, the SAG-AFTRA union said in a statement after its negotiating committee unanimously backed the deal with Walt Disney (DIS.N), Netflix (NFLX.O) and other companies.

Valued at more than $1 billion, the three-year contract includes increases in minimum salaries and a new bonus paid by streaming services, the union said.

The deal also provides protections against unauthorized use of images generated by artificial intelligence (AI), an area that had emerged as a major concern from performers who feared being replaced by "digital doubles."

"We have arrived at a contract that will enable SAG-AFTRA members from every category to build sustainable careers," the union said in a note to members.

SAG-AFTRA President and "The Nanny" star Fran Drescher wrote on Instagram: "We did it!!!! The Billion+ $ Deal!"

Celebrations erupted across Los Angeles. The resolution of the actors' strike means Hollywood can ramp up to full production for the first time since May, when film and TV writers walked off the job.