ABC Seeks to Limit ‘Vanity’ Credit, Fees

In another effort to hold the line on rising production costs, ABC is seeking to implement a policy that would stop many talent managers from receiving producer credits and fees on prime-time television series.

Studio and network executives have long chafed over “vanity” deals that afford managers credit--and fees from $25,000 to $50,000 per episode--merely for making clients available without providing any real services as a producer.

Big-name actors, by contrast, generally welcome such deals, because they often allow managers to waive their fees, with the studio covering the cost.

ABC’s negotiators have indicated that although preventing managers from producing is not a blanket policy, it represents one of the studio’s strategies to reduce “above the line” costs, which refers to the money paid to actors, producers and writers, as opposed to physical production costs.

“We have really tried to pare as much as we can below the line so we can continue to produce great product ... [and] we do have to find a way to be more responsible above the line as well,” said Stu Bloomberg, co-chairman of the ABC Entertainment Television Group, a unit of Walt Disney Co.

ABC officials acknowledge that the network and the studio’s production unit, Touchstone Television, may miss out on some projects and that its resolve would be tested when highly sought stars are involved.

Although rival executives lauded the concept, both they and talent representatives questioned how firm ABC--desperate for hits in the midst of a ratings slump--would be with such a policy.

Still, ABC is clearly seeking to send a message as program development gets into full swing before the announcement of next season’s prime-time lineups in May. Published reports also have indicated that the network is seeking savings from the packaging commissions paid to talent agencies for assembling projects.

Rival networks also have been discussing various methods to lower expenses, and with the advertising market down, even some talent managers concede such measures are necessary. Keith Addis, partner in the Industry Entertainment management company, called what ABC is doing a “responsible policy” amid the tighter economic climate.

“This is aimed at the manager who tries to say ... ‘You want my client to star in this series? Then I’m a producer on it as well,’” Addis said.

Manager Brad Grey, producer of such shows as “Just Shoot Me” and “The Sopranos,” agreed that ABC’s goal is understandable.

“I don’t think anyone is eager to be giving away credits or money in any cavalier way at a time when the economics are so difficult,” Grey said.

Grey added that defining what producing involves can be difficult given the wide range of functions it can entail. Unlike most managers, his company often bankrolls some or all of a project, functioning more like a studio.

Managers also point out that their ability to contribute as producers is sometimes blocked by the top writers who usually oversee the production of TV shows.

Addis said Industry Entertainment’s producing credits reflect the company’s level of involvement in a particular project and that it doesn’t always have a production role in shows featuring its clients.