FRASIER (A) ANALYSIS

This situatio outlines the background of the transactions between NBC (National Broadcasting Corporation) and Paramount pertaining to the extension of renegotiating the rights to the TV show, Frasier. While NBC wanted to pay under $5 million every episode to make a profit, Vital seemed to be strenuous $8 , 000, 000 per show. This was a very big gap considering that there have been 24 symptoms per time of year and that Paramount wanted a three year term on the renegotiated contracted. The key parties in cases like this are NBC (represented simply by Mark Graboff, Scott Sassa and Shaun Zucker) and Paramount (represented by Kerry McCluggage and Gary Hart). What is NBC's BATNA?

NBC's BATNA was to possibly steal a film from an additional network or perhaps begin a fresh show rather than Frasier. The situation points out that there were studies in the press about 20th Century Fox TV waiting its renegotiations for its sitcom, Dharma & Greg, with ABC, in the event NBC were to lose Frasier. However , this kind of meant that strategies would clear for systems stealing each other's TV shows, which in turn, could increase functioning costs for all those networks. The 2nd option (starting a new show) was not simply an expensive, yet a time consuming alternative, since new displays take time to develop an audience bottom (in conjunction with there being absolutely no way to predict its success or perhaps failure). Precisely what is Paramount's BATNA?

Paramount's BATNA was to store the display to various other networks in case the renegotiation speaks broke down. Nevertheless , due to the high production costs of Frasier, they were limited to the two networks comprising the ‘Big Three', ABC and CBS. Among these, CBS had the advantage since Very important and CBS TELEVISION STUDIOS were owned by Viacom. Also, from the case, it seems that ABC will not get involved due to the high price label involved. NBC was paying out about $5 million every episode in license charges. This is predicted to be higher than even their breakeven cost, which means we were holding making a loss in Frasier. NBC felt that neither FONEM nor CBS could match...