Tag Archives: Television

Money For Nuthin’ or Nick’s For Free

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AFTRA accused Nickelodeon of improperly negotiating talent revenue participation for the cable outlet outside of Nick’s shows. A copy of AFTRA’s purported letter to Nick (I couldn’t verify its authenticity) is here.

More specifically, AFTRA’s letter asserts that Nick requires “that the performer grant to the employer a right to a ‘profit participation’ interest in the talent’s third-party income as a condition of employment” in violation of AFTRA’s collective bargaining agreement and possibly California law.

I don’t think that AFTRA has a leg to stand on or they would have cited the applicable provisions of their agreement and the law chapter and verse. I suspect that Nick’s lawyers came to the same conclusion.

What is clear is that the major studios, networks and cable outlets are looking for the next Martha Stewart or, in Nick’s case, their answer to the Disney Channel’s “Hannah Montana”; building brands on the backs of the talent they break with the goal of cashing in on their success essentially forever.

While it’s difficult to empathize with the big entertainment companies, production costs are rising and viewership is more fragmented. As a result, they’re on a desperate search for new revenue streams.

I posted about this emerging deal point several months ago when the Food Network started asking for similar language in their talent agreements. With Nick now taking up the cause, a trend has developed and it won’t be long before the rest follow suit.

What was once an unreasonable “ask,” will become – if it isn’t already – business affairs policy unless talent reps develop the leverage to collectively reject it. However, with the potential millions to be made by breaking the next Miley Cyrus and a surplus of talented kids (and their parents) hoping to make it big, I doubt that’s possible.

Non-Scripted Outlets Want A Bigger Piece Of The Hostess Pie

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The Food Network made Emeril Lagasse and Rachael Ray into television stars and household names. They’ve also become multi-millionaires from the sales of countless books and other merchandise; revenues the network admits are typically excluded from their talent deals.

The NY Times reports that about a year ago, the “Food Network began aggressively trying to change that with new deals that were ‘way more onerous’ from the stars’ point of view, said a person who has been affected by the changing strategy, by insisting on a stake in book deals and licensing ventures, and control over outside activities.”

This is an important sea change in talent negotiations on non-scripted programming. While my experience has been that network participation in merchandising has been part of the ask from cable outlets, it has not, for the most part, been a deal breaker and then only when it arose from an outlet’s desire to embark on its own merchandising efforts (i.e., revenues from branding the network as opposed to the talent).

The Food Network’s approach will likely influence future negotiations at other outlets breaking new talent in their programming though probably less so on deals featuring talent with more hosting experience (i.e., brand recognition in their own right) or have pre-existing merchandising deals. Such talent will have more negotiating leverage but if pressed, may be able to negotiate limited outlet participation “above a baseline” from any bump in merchandising revenues after hosting the outlet’s programming.

No Strike Waivers For TV Yet But Web Start Ups Tempt Writers

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Variety’s Dave McNary reported that the WGA rejected requests for strike waivers by the Golden Globes and Oscar telecasts today. While the Guild granted waivers during the strike in 1988, I doubt they will now- even to Letterman and Leno -until and unless meaningful negotiations resume for two reasons. Awards shows present a high profile opportunity to make an adverse and very public impact on the quality of these telecasts. Secondly, any waiver now, absent meaningful negotiations and in the face of mounting holiday debts for WGA members, may erode the widespread support of Guild members to the cause.

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The LA Times ran a story that striking writers are in talks with venture capitalists to finance and launch Internet start-up companies. “Silicon Valley investors historically have been averse to backing entertainment start-ups, believing that such efforts were less likely to generate huge paydays than technology companies.” There’s been a change in that perspective, albeit a limited one, after the success of Youtube. I’ve been involved in several of these deals. One started just before the strike and was in production as late as last week. They’re interesting opportunities on the cutting edge of where the entertainment business appears to be headed. However, without the right business model, these ventures will – if they go anywhere – lead to cross-over deals for TV programming rather than a big pay day for an Internet venture. It reminds me of Web 1.0′s icebox.com or my stint with Film Roman’s Level 13 back in the day. Despite the risks, more and more of my clients are migrating to the Internet, if not for the potential payoff then for a chance to broaden their experience and marketability down the road.