8/13/2019 Frasier Group

1/7

8/13/2019 Frasier Group

2/7

Parties involved & their interests

National BroadcastingCompany

(wanted to pay under $5million per episode)

Paramount Studio

(demanded $ 6 million perepisode)

8/13/2019 Frasier Group

3/7

How Parties Influenced the negotiation processand its outcome

NBC

Want to pay 5% less

licensing fee that they arecurrently paying toParamount Studio for Frasier

Dont want to commit to three

year licensing agreement Proposed ratings based

increase and decrease in theBonus payment toParamount

PARAMOUNTSTUDIO(FRASIER)

Want to renew the contract

with 20% hike in the previouslicensing fee Initially insisted in three year

contract but later put thatissue off the negotiation table

Refused to go below $5.5 mn

licensing fee Mentioned to move to

competitor(s) Network CBSetc in case their interests arenot taken care off

8/13/2019 Frasier Group

4/7

BATNA & ZOPA

Paramountnot having

BATNA

No BATNA

NBC

Paramount

ZOPA: NBC offered creative bonus

offer based on ratings.

If Paramount believes their show is

good, they must go for the bonus

offer, but try and fix the slot as NBC

might later switch slots to bring the

ratings down.

8/13/2019 Frasier Group

5/7

Value

Amicable Negotiation

Bitter Negotiation

GAIN

LOSS

8/13/2019 Frasier Group

6/7

Obstacles

Paramount

taking a veryaggressivestand at the

outset withoutconsidering its

BATNA

The badtreatment ofFrasier crew

and show fromNBC

Plans to subvertNBC , deviatingfrom economic

issues

8/13/2019 Frasier Group

7/7