‘Dreams’ May Hint at What Lies Ahead for Merger

The first big day for NBC’s family drama “American Dreams” might well have been its last.

It was May 13, 2002, and the producers and cast had been flown to New York from Los Angeles to hobnob with thousands of potential advertisers gathered for the rollout of the network’s fall schedule. NBC Entertainment President Jeff Zucker was already a big fan of the show.

Everything seemed perfect -- until breakfast.

That’s when executives from Universal Television -- the arm of Vivendi Universal that was producing “American Dreams” for NBC -- told creator Jonathan Prince that the show would be shot in Canada. The budget, Universal executives said, wasn’t big enough to cover the costs of filming in L.A.

Prince refused. He wasn’t about to make “American Dreams” in Canada.

The two sides were suddenly at loggerheads. Universal executives tried pressuring Prince to reconsider, but he would not bend. NBC later joined the fray, taking sides with Prince. The conflict between the network and Universal grew so heated, those familiar with the situation say, some worried that “American Dreams” was in danger of falling apart before the first episode even aired.

As Zucker stepped onto the stage at Radio City Music Hall that afternoon, however, he was unaware of the behind-the-scenes fight that was unfolding. He told the crowd of advertisers that his favorite new show was the feel-good drama, set in the 1960s. “ ‘American Dreams,’ ” he said, “will follow the dreams of a family in Philadelphia through one of the most turbulent decades of our time.”

As it turned out, NBC was also in for a bumpy ride.

General Electric Co.-owned NBC on Wednesday announced it had finalized the details of its planned acquisition of Vivendi Universal’s U.S. entertainment assets, including Universal Television. NBC executives have confidently predicted a smooth transition, assuming regulators approve the deal early next year.

TV industry veterans, however, scoff at the idea that there will be easy harmony. They say it will take years for NBC to meld cultures inherently at odds.

Besides tussling over “American Dreams,” NBC and Universal have disagreed in the last couple of years over the handling of negotiations to renew the “Law & Order” franchise. What’s more, they have clashed over the price NBC would have to pay for other Universal shows, such as the new sitcom “Coupling.” And they have had their creative differences, including over the short-lived drama “Mister Sterling.”

Both sides downplay such squabbles.

“Of course, we have had differences,” said David Goldhill, president of Universal Television Group. “You can only have differences with people whom you are in business with. But overall, we’ve had a tremendous amount of success. We’ve had more success with NBC than with any other network.”

Added Zucker: Such friction is “the price of doing business in this town.”

NBC and Universal Television have had a long history together. The network has relied on a steady stream of shows produced by Universal, dating back half a century to “Dragnet.” Other Universal hits that have aired on NBC include “Wagon Train,” “The Virginian,” “The Rockford Files,” “McMillan and Wife” and “Miami Vice.”

But in recent years, relations have become increasingly rocky.

To be sure, tensions between the TV networks and television studios are not unusual -- especially now that it has become more difficult to make money producing programming.

Most TV shows operate at a deficit -- at least before syndication -- with networks typically paying about $1.3 million for an hourlong drama that costs a studio more than $2 million to make. And foreign interest in American shows has been drying up in recent years, shrinking a once-reliable revenue source.

Meanwhile, network executives have been clamoring for TV production companies to deliver shows with marquee talent, clever concepts and scenes with plenty of pizazz -- car crashes, helicopters and off-the-lot shots.

The result: Production costs are climbing, even though it’s far from a sure bet that a new show will succeed. In fact, three-quarters of all new shows fail, long before they are ripe for syndication -- where the big money is made.

It was against this backdrop that Universal pushed to keep a lid on the production costs for “American Dreams.”

Prince, a onetime actor who has spent most of his career writing sitcoms, arrived at the New York breakfast expecting to be clinking champagne glasses with Universal executives, celebrating NBC’s decision to add their show to the network’s lineup.

But the mood soured as soon as Universal executives talked about shooting in Canada.

“My heart just fell into my stomach,” said Prince, 45. “Here I finally got my dream show on the air, but I thought, ‘I won’t be a part of it.’ ”

Prince said he refused to move from Los Angeles because of his son, of whom he shares custody. “My 5-year-old son was about to start T-ball, and I coach his Little League,” Prince said.

There were other reasons too. He didn’t want to disrupt the lives and families of the nine actors, including two children, he had just hired. He also worried that Vancouver might not have a deep enough pool of black actors for guest parts on the show.

Then there was the political issue of California jobs drifting north of the border. “Could you imagine being the poster child for runaway production?” Prince asked. “In my mind, I could just hear it: ‘American Dreams,’ but shot in Canada.’ ”

The real problem, Prince contended, was that top Universal executives didn’t believe in “American Dreams” at that time and didn’t want to invest too heavily in it. “They wanted a little family show, with the emphasis on ‘little,’ ” Prince said. “It wasn’t part of their business model. I don’t think they saw the scope that I did.”

In fact, no one at NBC was expecting too much, either. It had been one of the last pilots that the network ordered for the year.

But Prince had big expectations. He had drafted his boss of long ago, pop music icon Dick Clark, to help produce his coming-of-age tale about a working-class family struggling to make sense of the 1960s. Clark let Prince weave original black-and-white clips of “American Bandstand” into the storyline.

Prince also wanted to explore the era’s turmoil and social complexities, recreating race riots and sending his TV family’s oldest son off to the Vietnam War.

As soon as NBC executives saw the pilot, though, they bought into Prince’s grander vision. There was nothing on the air quite like “American Dreams,” and the family themes struck the right chord in the wake of Sept. 11. They also thought the show might hook viewers on a night that ratings had been lagging.

“This is the little show that could,” Zucker said.

Universal was not convinced. For executives there, it was a matter of dollars and cents. Because they were in charge of the budget, they insisted that the show be shot in a cheap locale. NBC accused Universal of being too cheap. At one point, Universal executives threatened to hold Prince in breach of contract if he didn’t move the show to Canada, according to sources familiar with the dispute.

“Universal didn’t want to spend too much money because they didn’t think the show was going to work,” Prince said.

After tense discussions, NBC executives grudgingly agreed to pick up the tab of nearly $10 million a year in extra costs, most of which could be traced to shooting in Los Angeles. In exchange, the network took the unusual step of seizing control of the show’s production, shunting the Universal team to the sidelines.

Universal assumed a back seat as financial partner.

“American Dreams” went on to modest success on Sunday nights, becoming NBC’s highest-rated new drama last season. With a loyal following, it has averaged nearly 10 million viewers each week. Shooting in Hollywood also has allowed the producers to attract celebrity guest stars, including Kelly Clarkson, Alicia Keys and Britney Spears.

The show is a hit with advertisers, as well. They have embraced the show’s nostalgia and family themes, which have helped draw a relatively affluent and well-educated audience.

“The show has worked out great,” Zucker said.

Some say the sparring over “American Dreams” portends a difficult transition for the NBC-Universal merger, but others note that at least the two sides were able to work things out. “It was almost like a married couple staying together for the kids,” Prince said.