In 2001, NBC stepped into contract discussions with Paramount Television Group to continue the airing of the popular show "Frasier" on the network. Paramount, the studio that made the serial, firmly said that it would shift "Frasier" to CBS, Paramount's sister network, if NBC disagreed to a comparativelyincreased license fee than the present one. This case traces Marc Graboff's (EVP of NBC West Coast) evaluation of the circumstances.
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?