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Parties involved & their interests

National Broadcasting Company


(wanted to pay under $5 million per episode)

Paramount Studio
(demanded $ 6 million per episode)

How Parties Influenced the negotiation process and its outcome


NBC Want to pay 5% less licensing fee that they are currently paying to Paramount Studio for Frasier Dont want to commit to three year licensing agreement Proposed ratings based increase and decrease in the Bonus payment to Paramount PARAMOUNT STUDIO(FRASIER) Want to renew the contract with 20% hike in the previous licensing fee Initially insisted in three year contract but later put that issue off the negotiation table Refused to go below $5.5 mn licensing fee Mentioned to move to competitor(s) Network CBS etc in case their interests are not taken care off

BATNA & ZOPA


ZOPA: NBC offered creative bonus Paramount not having BATNA offer based on ratings.

NBC

If Paramount believes their show is good, they must go for the bonus offer, but try and fix the slot as NBC Paramount No BATNA

might later switch slots to bring the


ratings down.

Value

GAIN

Amicable Negotiation
Bitter Negotiation

LOSS

Obstacles

Paramount taking a very aggressive stand at the outset without considering its BATNA

The bad treatment of Frasier crew and show from NBC

Plans to subvert NBC , deviating from economic issues

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