In 2001, NBC entered into contract negotiations with Paramount Television Group to keep the hit show "Frasier" on the network. Paramount, the studio that produced the show, threatened to move "Frasier" to CBS, Paramount's sister network, if NBC did not agree to a substantially higher license fee than the one it was currently paying. This case follows Marc Graboff's (EVP of NBC West Coast) analysis of the situation.
1. Who are the parties in the Fraiser negotiation, and what are their interests? How can various parties influence the negotiation process and its outcome?
2. What is NBC's BATNA? What is Paramounts's BATNA? What is your best estimate of their respective reservation prices? Is there a ZOPA?
3. How can value be created in this negotation, and who is likely to get? What obstacles might prevent agreement, and how can they be overcome?
4. How should M arc Graboff judge success in this negotiation? As President of NBC West Coast, how would you want to compensate Graboff?