ABC made waves this fall when the network asked program suppliers to agree to several changes to the traditional pilot license agreements, including four runs of an episode, longer license terms and a share in backend profits. Vertically integrated era Studios, of course, balked at the suggestions. But for the most part, the TV business has started to adjust to this new vertically integrated era. Whereas production companies once challenged network strong-arm tactics, now those kinds of demands are mostly accepted as part of the game. And it's also now more or less understood that a network and its sister studio have a preferential relationship.
Vertical integration is no different.
Harbert said he thinks execs understand that from an economic standpoint, the networks must look inside their own stable before hitting up a studio that may already be beholden to another network. I'm thrilled to take material to other networks, but my job is to take care of NBC first. Time Warner finally take hold. Just as it took some time for Disney to figure out ways to merge its ABC Entertainment and Touchstone TV operations, most soothsayers don't think CBS and Paramount will co-exist as separate entities forever. My guess is sometime in the next 12 months Viacom will figure out what their implementation strategy is, and whether they'll follow a Disney model or a Fox model.