In 2001, NBC joined into contract discussions with Vital Television Group to help keep the hit show "Frasier" around the network. Vital, the studio that created the show, threatened to maneuver "Frasier" to CBS, Paramount's sister network, if NBC didn't accept a substantially greater license fee compared to one it had been presently having to pay. This case follows Marc Graboff's (EVP of NBC West Coast) research into 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?