Q: In terms of contract negotiations, how has producer/talent leverage changed over the past few years? how might it change over the next few?
-leverage has to be analyzed on a deal to deal basis. The conventional wisdom that the rich are getting richer and that leverage for the folks in the middle has lessened is pervasive; but the bottom line is that deals are harder to make for everyone today. The upshot is that if you represent someone who is marketable, who has proven value, or is rising in value, and, most importantly, who has the stomach to walk away if necessary, then you can still make a killer deal. That dynamic will never change no matter how much consolidation occurs among studios and financiers. Producer/talent leverage is also cyclical to some extent. Coming out of the strike over the past two years you practically had to draw blood to improve a client’s quote in television, but this year pilot season has already been much more exciting on the deal making front. 

Q: What are the most important considerations when negotiating a client’s deal and how are they different in television versus film?
-for any deal, whether film or television, you need to start with a clear understanding of your client's priorities balanced with your leverage in order to achieve the best possible result under the specific circumstances. Of course, it varies depending on what capacity your client is working in, but there is a smaller universe of possibility with most television deals. TV studios are married to quotes and budgets, and they work on an expedited schedule. So unless you’re negotiating an overall deal (which do still exist by the way) or handling a renegotiation, you focus on the bottom line, i.e., getting the most money upfront and defining the backend participation in a manner that your client will see real profits if a show is ultimately successful.

With features, the lead time is much longer and the parameters are typically more blurry, so you can have more time to be creative in your deal making. Every once in awhile though, you get a television deal that is a total game changer and requires the highest level of sophistication to make your client a true partner in a successful franchise (e.g., Raymond, Late Night, Seth/Fox).  The nuances of television deals at that level can equal millions of dollars and be more valuable than any first dollar participation on a feature (AVATAR aside, perhaps).

Q: What do you take away from the Seth MacFarlane/Google/MRC deal?
-first and foremost, that it’s not true that you can't make money with content on the Internet. We did. But, Seth is an incredibly unique talent, and he is particularly able to monetize his talents on the web with sponsored content. There are only a small handful of people who have managed to successfully accomplish it. The lesson for distributors is that, regardless of the distribution channel, you have to produce content that people want to watch. Seth understands how to do that.