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Negotiations Case Study

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Negotiations
Frasier case

A. Who are the parties in the Frasier negotiation and what are their interests?
(Viacom, CBS, Paramount, Kelsey) – (NBC, NBC West Coast ((Graboff)), ABC)
The parties involved in the Frasier negotiations consist of NBC, Paramount, and actor Kelsey Grammar. Paramount and Kelsey had personal interest to extend the show 3 years. Kelsey Grammar wanted to rank in history as being an actor with having the record for the longest-running primetime television character in TV. Without Kelsey Grammar (Frasier), Paramount, and NBC would not have a TV series. NBC did not view the show Frasier as having another 3 years of life and did not want to invest in another 3 years. Additionally, NBC deemed Paramount’s price per episode to high and wanted to minimize what they saw as a loss of revenue.

B. What is Paramount’s BATNA? What is your estimate of their reservation price? Paramount was banking on the fact that Frasier was the flagpole show of NBC and its success in the time slot. If they quit NBC, both Paramount and NBC would suffer while Paramount would have suffered the most. Paramount best alternative would have been to shop the show around to other networks in the case that the negotiations with NBC broke down. Paramount however was limited in networks to promote the show to due to the shows high overhead cost and industry consolidation. Due to these circumstances I would estimate Paramount’s reservation price around 5.25 million as Paramount was aware of their limited options.

C. What is NBC’s BATNA? What is your best estimate of their reservation price?
NBC’s BANTA was to buy another comedy show such as Dharma and Greg from another network such as ABC. NBC was looking for a comedy show that would produce the same viewing audience as Frasier. NBC was aware, that if this were to occur it could potentially causes a bidding

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