Many agents represent actors. Their role is to negotiate the best deal with a producer, on behalf of an actor. In return for negotiating an appropriate deal for the actor, the agent receives a commission.
Good producers must have a good understanding of legal and business concepts. Producers are conscious of production costs and are always trying to minimize such costs. The business acumen and negotiating skills of a producer are often far superior to those of an actor, whose discipline is of a creative, as opposed to business nature. As a result, actors rely on their agents to have training in law and/or business in order for them to negotiate effectively.
In the past, agents acted more like managers, assuming responsibility for such things as introducing clients to studios and producers and handling the media. However, agents have increasingly confined themselves to the central task of sending actors to auditions and negotiating the commercial and legal terms of the resulting deals. As a result of this, actors have turned to personal managers to do the things that agents used to do.
In some US states (most notably, California), state legislation prohibits managers form soliciting employment or negotiating deals. This is not the case in other countries, such as Australia.
In those US States that legislate agents, managers are not subject to the same financial interest restrictions that govern agents.
This legislative scenario allows managers to use the talent they manage in TV productions and films that they produce, for their own financial benefit. Agents are prohibited from doing this.
These restrictions have meant that the major players such as CAA and WME have had to be innovative and entrepreneurial in their approach to talent management.
Many agencies have expanded their highly profitable music touring departments. Agencies such as Paradigm have setup a film-financing division. Film and TV packaging has increased. Firms are constantly looking to tap into new media and endorsement opportunities or secure financing for deals that give unprecedented ownership and monetary upside that studios never grant.
Whilst demand for films in the US is waning, demand from China and India is rapidly increasing. These markets provide opportunities for agencies that are different to any experienced in the entertainment industry to date.
Regardless of whether they are a ‘manager’ or ‘agent’, these Asian opportunities will no doubt be pursued with gusto. The activities of agents and managers in places such as India and China will also be less regulated and provide more opportunities.