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I recommend this book.
Michael Ovitz was a Hollywood super agent who founded CAA (one of if not the biggest Hollywood agency). He now is a startup investor.
It’s full of powerful lessons, tells a good story, and gives a window into Hollywood, one of the USA’s Crown Jewels.
Michael Ovitz was a Hollywood super agent who founded CAA (one of if not the biggest Hollywood agency). He now is a startup investor.
It’s full of powerful lessons, tells a good story, and gives a window into Hollywood, one of the USA’s Crown Jewels.
So how’d he get so damned rich?
He broke off from another agency (William Morris), starting CAA with a differentiated strategy.
He would package the deals which would be sold to the studios. Prior to CAA a screenwriter’s agent would bring a script to the studio then they’d seek
He broke off from another agency (William Morris), starting CAA with a differentiated strategy.
He would package the deals which would be sold to the studios. Prior to CAA a screenwriter’s agent would bring a script to the studio then they’d seek
our talent for the various roles.
“Oh Brad Pitt, you don’t want to do it? No problem. We’ll have Leo do it.”
The problem is that here the studio has all the leverage because all the parts like director, actor, etc are interchanged.
Ovitz turned this on its head by packaging
“Oh Brad Pitt, you don’t want to do it? No problem. We’ll have Leo do it.”
The problem is that here the studio has all the leverage because all the parts like director, actor, etc are interchanged.
Ovitz turned this on its head by packaging
the deals. He’d grab the screenplay for ghostbusters, get the director, and bring the stars. Instead of bringing a screenplay, he was bringing a finished package to the studio. The studio couldn’t chop Bill Murray’s price because it didn’t have an alternative. He was part of the
deal. You either took ghostbusters or you didn’t.
By doing this, ovitz got more money for all the panthers he represented.
This allowed him to pick up more clients. The more clients CAA picked up.m, the easier it was for him to package deals. He kept doing this until CAA
By doing this, ovitz got more money for all the panthers he represented.
This allowed him to pick up more clients. The more clients CAA picked up.m, the easier it was for him to package deals. He kept doing this until CAA
cornered the market. They had all the talent which the studios needed so he could set the prices :)
That parallels between what ovitz did and what lebron is now doing in b-ball and with his own agency is interesting.
/thread
That parallels between what ovitz did and what lebron is now doing in b-ball and with his own agency is interesting.
/thread
I don’t think I explained the benefits of packaging as clearly as I should have:
1. Packaging does the job of the studio for them. You can charge more because their competitor will pay more for less work
2. Reduces leverage on studio side by preventing swapping out actors
1. Packaging does the job of the studio for them. You can charge more because their competitor will pay more for less work
2. Reduces leverage on studio side by preventing swapping out actors
3. Actors get more money which begets more actors to caa which makes it easier to package deals which creates a virtuous cycle culminating in a cornering of their market allowing the agents to set prices
/done now
/done now
