The film industry is divided in
Production, Distribution and Exhibition. The exhibitor's companies are those in
charge of the public screening of the movie, they promote the experience of
watching a film in a movie theater. One of the most important exhibition
companies back in my country is Cine Colombia, which collects 45% of the market's
shares, surpassing multinationals such as Cinemark. I had the opportunity to
interview William
Torres, the Exhibition Manager
of Cine Colombia, the man commanding the operation of 37 movie theaters in the
country. As part of his functions he has the power to decide which movies will
be shown, in how many screens and for how long. He is responsible for all of
the decisions related to the box-office - he negotiates all day every day.
During the interview, Torres told me
that he has had to deal with two types of negotiations within his position, one
with suppliers and the other bargaining with participation accounts with the distributors
or other companies. In both kinds of negotiations the most important thing for
him was to work for a win-win deal. He said that each party always started the
negotiation with the purpose to get the best for themselves, but it is
important to start building a mutual benefit. In order to separate the people
from the problem, William Torres said that it is important to always keep the
goal in mind, staying away from the thoughts of starting an infighting as a
negative perspective based on the other person's ideas will impact the results
of the entire deal. To handle positional bargaining, therefore, he emphasized
the importance of taking a break - a space that will allow both parties to
evaluate what has been happening, and thereafter the position to regroup with
new solutions. He also proposed that in case that break does not work, the
alternative is to find a superior or a third party to intervene.
Nevertheless, before any negotiation,
the preparation is essential, so he always researched the other party by requesting
background information, results in previous negotiations, and also by
requesting clear statistics and market trends within the other party. This
‘objective criteria’ will make the negotiation effective and will reduce the
risk of falling into dirty tricks that are a reality to be faced in most cases.
As there is always pressure, after a deal it is important to carefully review
the warranties. In some cases the suppliers can feel intimidated, there is
often times a form of a psychological pressure in dealing with a big company,
so they may decide to sacrifice some aspects in exchange for greater market
recognition.
In conclusion, I felt very content in
talking with an important executive in the entertainment industry of Colombia,
who gave me a very real perspective of the challenges I may face during future
negotiations in my career.
