The Role of Agents (actor’s Agent and Casting Director)

Yashar Goulbourne

NEG.

April 6, 2016

Questions to be answered for Hollywood case instead of negotiation plan: The role of agents (actor’s agent and casting director)

Instructions: this plan is worth two points; if a question has two parts and you only solve one, you get zero for the question and the entire plan.

1. What issues are important for you to negotiate with the person you are representing (the principal) - you need to state at least 2 issues? Please state a target, reservation and BATNA for the distributive issue(s).

ISSUES

Budget

        Getting the actress on board as well

Target: $700,000

Reservation: $900,000

BATNA: Find another actor/actress fitting for the job

1. There is potential for a conflict or disagreement occurring with the principal (the principal here is either the actor if you are the actor’s agent or the network executive if you are the casting director) in this case- what do you think could be the cause of such disagreement? Why? (at least 2 bullet points)

•           Disagreement: Principal may think they deserve a greater salary

• Cause of Disagreement:

• Actor is well known across the world and has plenty of expertise in the industry.

• Why: Actor has been in several movies, equating to a good bit of time in the industry. Some movies did very well overseas as well.

• Basing expectations on previous salaries earned in other roles.

• Why: Actor has had a few flops in other roles

1. What benefits can you give this person (the principal) that he/she may not be able to obtain on his/her own (at least 2 bullet points)?

• Opportunity to earn extra income from international profits

• $200,000 in additional income

• Package deal with other actors and actresses

• Could include other actresses and actors in deal; would be able to request that they are offered less in attempt to increase salary for actor.                                                                                                                                                                                                                                                  

1. Why do you think agents can sometimes not be totally motivated to act in the best interest of the principal they are representing in general (agency problem)? Give one example based on this case. (at least two bullet points)

Agents may not be totally motivated to act in the best interest of the principal they are representing because of their individual career aspirations. For example, in this case, the agent is interested in “keeping a great relationship with the actors’ agent and Mr. Actor by trying to offer him his deserving salary even though the Network Executive doesn’t approve and would rather a lower a budget. The agent is looking in the best interest for himself.