Michaels Won't Focus On Deflategate During SB NFL Network Reporters Walk A Fine Line Many Former Patriots Currently In Media Jobs NBA Extends Rights With China's Tencent Daily Fantasy Sports Participation Booming Back9Net Trying To Raise "Significant" Capital Pro Bowl Audience Down On ESPN Media Notes Rogers Wins World Cup Of Hockey TV Rights MLS Sells YouTube Channel KickTV
Upcoming Conferences and Events
HOLLYWOOD'S "DREAM TEAM" SIGNS ON WITH CAP CITIES/ABC
Published November 29, 1994
The so-called "Dream Team" -- Jeffrey Katzenberg, Steven Spielberg and David Geffen -- formed a partnership with ABC/Cap Cities to produce prime-time and syndicated TV shows. CNN's Steve Young said the deal, reportedly $200M over seven years, "sheds more light on ABC than the trio." Smith Barney Media Analyst John Reidy: "The theory or rumor or myth that all the networks were going to acquire a movie studio is pretty much -- at least in the case of Capital Cities/ABC -- put to rest by this deal." CNN's Young noted the timing, with Paramount and Warner Brothers launching their own networks in '95 ("Moneyline," 11/28). ABC Television Network Group President David Westin said he hoped the new studio will eventually produce all of ABC's programming, while Cap Cities/ABC President Robert Iger said the net considers the deal its "big bet" (John Carmody, WASHINGTON POST, 11/29). The deal represents "a dramatic departure from the traditional financial relationship" between studios and networks. "The venture will be a 50/50 split between the two sides, both in financing and in reaping the profits from syndication sales and other sources" (Jane Hall, L.A. TIMES, 11/29). Wertheim Schroder & Co. analyst David Londoner: "It is the first time, to my knowledge, that a network has shared revenues with a production entity" (Geraldine Fabrikant, N.Y. TIMES, 11/29). The deal is seen as a "coup" for Iger, and "it goes a long way toward easing concerns about his longer-term vision for ABC's future" (W.S. JOURNAL, 11/29).