Chapter 5 What if it succeeds?
"Now, more and more Hollywood artists are beginning to get used to life designed and arranged by CAA. Whether they want to, or whether they like it or not, this trend is currently unstoppable because CAA has few heavyweight opponents and is getting fewer and fewer."
Orwitz picked up his hand and leaned back.
"As for you," he glanced at Lite, "please tell me what method you are going to use to defeat CAA. Even if you can convince one or two stars to let you serve as their agents, but from writers to screenwriters, directors to actors, musicians to producers, most of the top performers have been invested under CAA. It is difficult for you to gather together top resources for big projects. In front of TV stations and movie giants, it is difficult to be qualified to bid. At most, you can just take a few stars to do some advanced odd jobs."
Li Te was silent. His brain was running rapidly, searching through this body and memories from the future, trying to find a way to defeat CAA. But even in the year he traveled through time, CAA was still strong, and no agency could challenge its status, so this was almost an unsolvable proposition.
Owitz didn't mean to stop there: "If these are not enough, then I'll tell you about the opponent you selected for yourself. During the time when I decided to leave CAA, the newspapers rumored that CAA was about to disband, and young supervisors were preparing to collectively change jobs, etc. Rumors broke out for a while, but what everyone didn't expect was that CAA completed the transition from the old and new transitions very calmly and quickly. From my departure to the new leadership positioning and the establishment of the new system, all of them were completed in the same month. Now many people see the shadow of our five founders in them, but they are younger, very skilled in doing business, and extremely lethal. They are very like a legendary invincible Turkish elite team, so they quickly won a title in Hollywood: the young Turks. They are fighting in teams, and you are just one person, and there is no suspense in the outcome of this battle!"
"Is CAA really invincible?" Johnny Kirkland couldn't help but interrupt, not because he sympathized with Litt, but because he felt that Orwitt had something to say later.
"Of course not. The strongest fortress has always been conquered from the inside, and CAA is no exception. If more than one-third of CAA's agents can be poached, it will fall apart immediately."
Orwitz deliberately paused when he said this, observing the different reactions of Litt and Kirkland.
Kirkland's eyes were shiny, while Litt was silent.
"However, it is basically impossible to poach people from CAA!"
When Orwitz said this, Kirkland's expression suddenly subsided.
Litt accepted this statement calmly because he knew better about the CAA than Kirkland.
Only today did Orwitz betray William Morris's agency with four other agents was the only one that he had today. In order to avoid the same story being played out again, Orwitz not only emphasized team culture within the company, but also carefully set "betrayal costs" for all department managers and celebrity agents of CAA.
In most brokerage companies, celebrities follow their agents, while CAA is different. When providing brokerage services to celebrities, they operate teams. Although sometimes an exclusive broker is appointed to work for a superstar, the broker is only responsible for part of the work, and most of the work is still completed by the company. Therefore, even if an agent changes jobs, the superstars under CAA will not go alone.
Because of this constraint mechanism, there has not been a collective departure for more than 20 years since the founding of CAA. Even in 1995, one of the founders, Meyer, was looking for another job, and Orwitz himself then hanged the seal. CAA just trembled a little and soon continued to move forward as hard as steel.
Moreover, the new leadership of CAA, the group of "young Turks" are more aggressive than Orwitz in their business ideas. They are not satisfied with the current situation where other brokerage companies cannot poach people from CAA, but take the initiative to attract agents with top artist resources to join the company. In just one year, the company's partners have changed from 9 to 12 now, and this number is still increasing.
This move is more troublesome to the peers than direct mergers and acquisitions, because the current situation is that only CAA can poach opponents, and it is almost impossible for opponents to poach people from CAA.
"So, change your goal! CAA is not something you can challenge now. As long as they don't make mistakes, no one in Hollywood can shake CAA's status!"
Orwitz is not attacking Litt, but stating a basic fact.
Johnny Kirkland looked at Li Te who was silent and looked down, and he really began to feel sympathy for this guy. He was a rookie who had just started, but he chose an opponent that could not be defeated at all. Now he was hit by the cruel reality?
"No, I don't think CAA is really invincible!"
Li Te slowly raised his head, and there seemed to be a burning flame in his eyes.
"Authentic, CAA is indeed as powerful as you said, but it still hasn't avoided a common problem that exists in all brokerage companies, that is, it doesn't pay enough attention to newcomers!"
In Hollywood, since the salary of agents is closely related to the actors' pay, the opportunity to perform movies is mostly related to the reputation of actors, which has caused new actors to encounter a lot of trouble: because they have no fame, it is difficult for them to gain the favor of big-name agents, and without the assistance of agents with deep connections, it is difficult for them to enter the already closed entertainment industry and get the opportunity to perform.
On this issue, CAA is not immune to the common sense. Among Orwitz's many discussions about CAA, the word "top resource" has been mentioned many times as the most intuitive evidence. To put it bluntly, CAA only likes to be a talent agency for big-name stars.
This was not a mistake, but now Lite has brought it up specifically, and Orwitz immediately understood Lite's intention.
"So you're going to go and compete with those managers for prey?"
When mentioning the word manager, Orwitz made a slight move to the corner of his mouth, which shows that he doesn't have much favorable feelings for this profession.
Although the broker and manager are only one word different, the responsibilities of the two are clearly distinguished: the broker is responsible for seeking job opportunities for clients, while the manager provides consulting for clients’ career and career planning, and provides relevant assistance and training for clients’ career development.
But in Hollywood, the scope of work of managers and agents often overlaps. Agents are not allowed to participate in the sharing of the interests of artists' works in any way, while a manager can serve as the producer of artists' performances. Therefore, the agent's salary only comes from a commission of artists' remuneration not exceeding 10%, while a manager can be paid without a cap, usually 15% or 20%, or even more.
Because managers are asking for too high prices, big-name artists generally only accept the services of agents, but those newcomers who are eager to make a comeback have no choice. Generally, agents look down on them, so they can only accept the services of managers.
Originally, managers began to provide services to artists before they became famous, and these early investments may take some time to get rewards. Even if they are not lucky, they will be wasted. Therefore, Hollywood's game rules allow managers to provide higher income commissions to protect their investment risks. However, the problem is that some managers are too greedy and still charge a higher proportion of income commissions after helping artists become famous. When artists cannot tolerate this kind of exploitation, conflicts between the two sides are easily broken.
In the past few years, this situation has happened frequently. After the big stars became more and more prosperous, in order to get rid of the manager's control, they did not pay the manager's compensation. After being sued by the manager, they won the case in the law because while the law imposed various restrictions on the agent, they also gave the agent unique power, that is, to help artists negotiate work. In other words, people like managers who do not obtain agent licenses do not have the legal authority to help artists negotiate contracts and get remuneration. This is why managers often lose when suing artists who breach contracts, because some of their income is illegal.
Of course, as long as the manager does not make a fuss with the artist, the industry usually holds a tacit attitude towards the manager's "illegal income" because managers do play an irreplaceable positive role in cultivating newcomers.
Originally, Johnny Kirkland's eyes were still looking forward to Liter, but after Orwitz pointed out Liter's intention, Johnny Kirkland's eyes changed.
As an agent with a license approved by the California Labor Law, Lite turned his attention to new artists that ordinary agents do not like. This practice feels somewhat hungry in the eyes of others.
Although Orwitz did not write down his disappointment directly on his face, he obviously did not like Litt's idea. However, there is one thing he is better than Kirkland. He did not despise Litt because of Litt's idea. On the contrary, he felt that this was a very pragmatic manifestation.
Li Te is now not famous, has no connections, and has no connections. Big-name stars will only find him as agents unless they have brain cramps. Only those newcomers who are not well-known will be willing to cooperate with him.
Maybe I should support him and give it a try.
This thought flashed through Orwitz's mind. Although he didn't have much hope for Lit, what if he succeeded?
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Chapter completed!