film industry The film industry or motion picture industry comprises the technological and commercial institutions of filmmaking, i.e., film production company, production companies, film studios, cinematography, animation, film production, screenwriting, pre ...

terminology, ''movie packaging'' or ''film packaging'' is a type of

product bundling In marketing, product bundling is offering several products or services for sale as one combined product or service package. It is a common feature in many imperfectly competitive product and service markets. Industries engaged in the practice ...

in which a top level

talent agency Talent has two principal meanings: * Talent (measurement), an ancient unit of mass and value * Talent (skill), a group of aptitudes useful for some activities; talents may refer to aptitudes themselves or to possessors of those talents Talent ma ...

starts up a film or television project using writers, directors and/or actors it represents, before giving other agencies a chance to submit their clients for the project. For this service the talent agency negotiates a packaging fee. Instead of collecting the usual 10% fee from individual clients, the agency receives the equivalent of 5% of what the studio or network pays the production company; 5% of half (''i.e.'' 2.5%) of any profit the production company earns; and 15% of adjusted gross (syndication revenue minus costs the network does not pay).

Packaging incentive

Packaging can be much more lucrative for agencies than the usual 10% fee; in 1989 ''

The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...

'' reported that a major

could earn $21,000 to $100,000 for each episode of a network show. Packaging is frequently done by the “big four” talent agencies

Creative Artists Agency Creative Artists Agency LLC (CAA) is an American talent and sports agency based in Los Angeles, California. It is regarded as an influential company in the talent agency business and manages numerous clients. In March 2016, CAA had 1,800 employ ...

(CAA), Endeavor,

ICM Partners ICM Partners is a talent and literary agency with offices in Los Angeles, New York City, Washington D.C. and London. ICM (International Creative Management) Partners represents clients in the fields of motion pictures, television, music, publi ...

, and United Talent Agency. Although packaging has existed since the

Golden Age of Radio The Golden Age of Radio, also known as the old-time radio (OTR) era, was an era of radio in the United States where it was the dominant electronic home entertainment medium. It began with the birth of commercial radio broadcasting in the earl ...

, it has been claimed that

Michael Ovitz Michael Steven Ovitz (born December 14, 1946) is an American businessman, investor, and philanthropist. He was a talent agent who co-founded Creative Artists Agency (CAA) in 1975 and served as its chairman until 1995. Ovitz later served as preside ...

of CAA was the first to package movies, in the late 1970s. Freddie Fields and

David Begelman David Begelman (August 26, 1921 – August 7, 1995) was an American film producer, film executive and talent agent who was involved in a studio embezzlement scandal in the 1970s. Life and career Begelman was born to a Jewish family in New Yor ...

have also been credited with pioneering the movie "package", at their agency Creative Management Associates in the early '70s. The

Writers Guild of America West The Writers Guild of America West (WGAW) is a labor union representing film, television, radio, and new media writers. It was formed in 1954 from five organizations representing writers, including the Screen Writers Guild. It has around 20,000 mem ...

(WGA West) estimated that 87% of TV shows were packaged during the 2016-2017 season.

Criticism

Packaging as a practice has been criticized by several writers, directors and actors as inherently causing a major conflict of interest between an agency and its clients. In 2019,

David Simon David Judah Simon (born February 9, 1960) is an American author, journalist, screenwriter, and producer best known for his work on ''The Wire'' (2002–08). He worked for ''The Baltimore Sun'' City Desk for twelve years (1982–95), wrote '' Hom ...

published a letter detailing how packaging incentivized his agents to work against his best interests on the deal for the television show '' Homicide: Life on the Street''. Simon's letter eventually led to a breakdown between the

Writers Guild of America The Writers Guild of America is the joint efforts of two different US labor unions representing TV and film writers: * The Writers Guild of America, East (WGAE), headquartered in New York City and affiliated with the AFL–CIO * The Writers G ...

(WGA, the labor union representing

screenwriter A screenplay writer (also called screenwriter, scriptwriter, scribe or scenarist) is a writer who practices the craft of screenwriting, writing screenplays on which mass media, such as films, television programs and video games, are based. ...

s in the US) and the Association of Talent Agents (ATA, the group representing the major agencies), when the sides were unable to negotiate a "Code Of Conduct" agreement that addressed the concerns of packaging, resulting in the mass firing of talent agents by all WGA members on April 15, 2019.

Lawsuit

On April 17, 2019, the two WGA groups, Writers Guild of America East and WGA West, sued the "big four" agencies, claiming that packaging fees are an “egregious conflict of interest” that “constitute unlawful kickbacks” from studios to the agencies. The lawsuit was filed in Los Angeles Superior Court against the four dominant

Hollywood Hollywood usually refers to: * Hollywood, Los Angeles, a neighborhood in California * Hollywood, a metonym for the cinema of the United States Hollywood may also refer to: Places United States * Hollywood District (disambiguation) * Hollywoo ...

talent agencies: Endeavor, CAA, United Talent Agency and ICM Partners. Approximately 95 percent of WGA members voted "in favor of a code of conduct that would cease packaging fees."

References

Film and video terminology Film production Product management {{film-term-stub