You are Terry Schiller, Syndicated Sales Representative for HOLLYVILLE, Inc., international multimedia corporation that specializes in producing television shows and motion pictures. You represent the company in negotiating the sale of syndicated programs to local television stations. Syndicated programs most commonly are sold to independent local stations after running as a regular show on one of the major networks.
As one of the top seven producers in the industry, HOLLYVILLE is a major supplier to the television networks, but this business taken alone results in a loss to the company. First-run network television programs typically incur a 20% loss. It is in the syndication market that this loss can be turned into a sizable profit, transactions at which HOLLYVILLE usually excels. However, this market is very risky--only about 15% of the network programs from given season make it to syndication.
Over the past decade, the increase in programming outlets has increased the demand for syndicated programs and consequently has put producers in a more favorable bargaining position. Unfortunately, due to an unusually bad year, HOLLYVILLE has not realized the benefits from this increased negotiating strength. Two shows that were a "sure bet" for syndication never sold. As a result, your division’s sales are significantly below projections. With the fiscal year ending next month, this is of particular concern to you as your performance evaluation is based on year-end booked sales.
To improve its financial position, HOLLYVILLE decided to syndicate one of its top ten network hits, Soap.com, a year earlier than anticipated. The story line focuses on three women who are trying to balance their lives as dot. com executives and mothers of teenage children. This show generally achieved a 20 rating and 30 share in prime time.' The show's audience is dominated by 25-54-year-old women, which is the