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Why Agencies Fight for Package Fees Even as Streaming Diminishes Their Value

As the Writers Guild of America and Hollywood’s biggest talent agencies approach the one-year mark of their protracted battle over the practice of packaging fees, several entertainment lawyers spoke with TheWrap about why the fight continues despite the proliferation of streaming and the disruption it’s had on Hollywood. Packaging fees — those collected in return for an agency bundling on-screen talent, writers and a director into a project on behalf of a studio or network — were once a highly profitable business model for agencies when they landed a successful show. Success typically meant syndication. That’s no longer the case. The likes of Netflix, Amazon and Hulu have gained influence, giving way to the recent entrance of Disney+ and Apple TV+; and Peacock, HBO Max and Quibi are soon to follow. Streaming has changed the relevance and value of packaging fees in Hollywood, disrupting the traditional business model and expanding the lifespan of film and TV shows. “The things we’re talking about are very esoteric: What’s the future of repping talent? How do you do that while also making the most money?” David Chidekel, an entertainment lawyer and partner at Early Sullivan Wright Gizer & McRae, said. “Without an agent...

Read original story Why Agencies Fight for Package Fees Even as Streaming Diminishes Their Value At TheWrap