Negotiations between major Hollywood studios and actors were suspended on Wednesday, meaning production of certain shows and movies could remain on pause.
Actors' union SAG-AFTRA has been on strike since July.
The two sides have been fighting over issues such as compensation and the use of artificial intelligence.
Studios said they were pausing talks because they were "no longer moving us in a positive direction".
"After meaningful conversations, it is clear that the gap between the AMPTP and SAG-AFTRA is too great," the Alliance of Motion Picture and Television Producers (AMPTP), which bargains on behalf of the studios, said in a statement.
The news comes several weeks after the Writers Guild of America - which had been on strike for 148 days - reached a deal with entertainment companies, which included better royalty payments for streaming content.
Many hoped the deal would help bolster an agreement between studios and striking actors, who resumed negotiations last week.
The conflict has left thousands of people without work and cost the Hollywood economy billions of dollars.
AMPTP said it ended talks with the actors' union this week after seeing the latest proposal from actors. The group claimed the plan would could cost companies an additional $800m (£650m) a year and create "an untenable economic burden".
SAG-AFTRA, meanwhile, claimed in a letter to members that the group overestimated the cost by 60%. The group said it was "profoundly disappointed" the talks had broken down, according to US media.
"We have negotiated with them in good faith... despite the fact that last week they presented an offer that was, shockingly, worth less than they proposed before the strike began," the union wrote.
Actors have been asking for better pay for streaming content and better control of the use of artificial intelligence.
The breakdown in talks means production for scripted shows this autumn remains suspended.