Last Monday, the news broke that Creative Artist Agency (CAA) would acquire ICM Partners, further strengthening CAA’s position as the largest talent agency in Hollywood. CAA also believes that it will increase their clout in the high-stakes negotiations with studios over compensation for their stars.
In fact, there’s a lot to discuss in light of the dramatic changes in how movies are being distributed, with streaming having assumed a more prominent role. Proper compensation for a movie’s success can no longer be tied primarily to box office results, since an increasing number of films are being released straight to streaming, with or without a theatrical run. CAA is angling to front load compensation for their clients, which could work to the benefit of exhibitors. A likely outcome will be to make day & date releasing less profitable for studios than it is currently, resulting in more movies opening once again with an exclusive theatrical release.
See also: Creative Artists Agency to buy ICM Partners in landmark deal (L.A. Times) and How The Pieces Fit In CAA’s Acquisition Of ICM Partners (Deadline)