Using The Filmmaker / Distributor Negotiation

1696 Words7 Pages
Using the Filmmaker/Distributor negotiation, the team had a difficult time separating the person from the problem at hand. After the negotiations ended, it was revealed that Real World Films was going out of business. The distribution company wanted 50% of gross sales and we failed to properly see their perspective as to why they wanted, or needed, such a large percentage. Steve, from the distributor’s side, implemented one tactic that I felt helped with the “back and forth” arguments and emotions. He suggested that a quick recess was taken to give them time to regroup and discuss the situation. The one thing we were able to eventually do well was, clearly communicate our points of view, and ultimately reach a solution that worked for…show more content…
A great example of how we came to a mutual benefit in the Filmmaker/Distributor negotiation was, discussing the length and compensation percentage of the contract. Real World Films offered a one-year term, and splitting the gross sales by 50%. We felt that those terms were too steep. Eventually, the option of a tiered system was suggested and we were able to agree on a three-year term with the first year starting at 20%, the second at 25%, and the third at 30%. This was a good option for us because it locks in a distributor for three years at an affordable amount. The option was agreeable to the distributor because it gave them a stable client and income source. In preparation for negotiations, the team looked up several “industry standard” categories between filmmaker and distributor. We determined what common distribution methods were used, how much filmmakers make when digitally distributing their products, and the standard distributor asking price. With this research, we were able to discuss what income we needed, how long we wanted to work with the distributor and how we wanted our product distributed in this order. Then, we discussed who was going to take point in the negotiation. Our team did a good job in keeping negative emotions from controlling us and staying on the agenda. In the Actor/Producer negotiation, the actor’s BATNA was to receive an advance of $500,000 but he would sign his life rights away to the producer. This was not extremely
Open Document