Key Moments
Hollywood CEO: How to Look Powerful in Any Room | Jeremy Zimmer
Codie SanchezKey Moments
Hollywood deals are won before negotiations begin, driven by deep client passion and a strategic focus on long-term asset building, not just short-term gains.
Key Insights
Deals are predominantly won before entering the negotiation room due to thorough preparation and setup.
A key indicator of talent is a deep, 'transcendent' passion for the product, not just superficial desires like wealth or status.
The modern agency model focuses on building teams around clients and diversifying services beyond traditional talent representation.
Successful entrepreneurs must learn to distinguish between 'how' and 'who' problems, as people often are the root of business challenges.
The power dynamic is shifting from individual talent to consolidated platforms and buyers, posing a significant challenge to the industry.
Developing discernment in identifying what is 'objectively good' and remaining curious are crucial for aspiring creatives and business professionals.
The 'before the deal' advantage
Jeremy Zimmer, former CEO of United Talent Agency (UTA), emphasizes that the success of any significant deal is determined long before any negotiation takes place. This involves meticulous preparation, understanding client motivations, and setting the right foundation. According to Zimmer, if you "set everything up in the beginning the right way, usually deals are kind of done before you actually get in the room." This philosophy underscores the importance of strategic groundwork over aggressive negotiation tactics – a crucial insight for anyone looking to master deal-making.
The early struggles and resilience of a founder
Zimmer's own journey began with significant adversity, including a stabbing incident at 19 and flunking out of college. This led him to a mailroom position, a common entry point in Hollywood. He contrasts his lack of a structured plan with his children's organized education, highlighting that his early career was about "no plan, no idea, no concept." This period fostered a deep appreciation for apprenticeship, as genuine expertise in fields like talent agency is learned through experience rather than formal education. The ability to overcome early failures and persevere through challenges is presented as a foundational element of success.
Identifying genuine talent beyond swagger
Zimmer admits his past confidence in infallibly identifying talent was misplaced. He once believed that swagger and "fake humility" were indicators, but found that many such individuals could not sustain effort. The core element he now emphasizes is "some connectivity to the product" – a genuine, "transcendent experience" with the art form itself. This passion for the product, whether film, music, or art, is essential because the odds of success in creative fields are exceptionally low. This drive must be intrinsic, as external motivators like wealth are insufficient to weather the inherent difficulties.
The evolving agency model: teams over individuals
The structure of modern agencies like UTA has evolved significantly. Zimmer explains that it's no longer solely about individual agents building lists of clients. Instead, agencies build comprehensive teams around each client to service their diverse ambitions, whether it's production, publishing, or live events. This diversification, driven by the changing landscape and client needs over the past few decades, allows agencies to offer a holistic support system. Zimmer notes that this growth through acquisition and team-building was necessary because trying to develop all these capabilities from scratch would be too slow and challenging.
Navigating business 'pain' and irrational fears
Zimmer shares that true engagement in business comes from experiencing "the pain" – the sting of losing an artist, a major opportunity, or facing foundational cracks in the company. He describes moments of not knowing "if I can get out of bed tomorrow morning." He also addresses the founder's fear of making one fatal mistake, countering that a business built on a single precarious decision is not robust. He recounts a near-disastrous acquisition of a music agency just before the pandemic, which was ultimately averted, highlighting the importance of risk assessment and avoiding catastrophic, unrecoverable situations.
Principled stances amidst corporate silence
Zimmer recounts sending a powerful email to over a thousand employees on October 11, 2017, just after the Harvey Weinstein news broke. The email stated, "Harvey earned his demise, and it should serve as a cautionary tale to anyone in our industry who believes moguls own their thrones." He stresses that such stances, even when contrarian or when "corporate America has kept so quiet," stem from a need to make colleagues feel safe and to not "condone it with our silence." This commitment to speaking out, even on issues like political matters or social injustices, reflects a core value of standing for what is right, regardless of potential backlash or the prevailing corporate reticence.
The power of decisiveness: knowing what NOT to do
Zimmer emphasizes the strategic advantage of knowing what decisions to avoid. He spent nearly 20 years perfecting UTA's film and TV business before expanding into music or sports, a testament to focused execution. This is supported by a Harvard Business Review analysis showing executives who excel at deciding what *not* to do outperform their peers by 20-25%. In an era of information overload and AI-driven standardization, discerning what deserves attention and what to ignore is crucial for both creators and business leaders.
The evolving landscape: power of platforms and consolidation fears
He expresses concern over the increasing power of consolidated platforms like Netflix, Amazon, and YouTube, highlighting their vast advertising revenues compared to traditional media companies. Zimmer uses the metaphor of shepherds and sheep competing for goats while a castle full of gold watches, illustrating how internal competition (agents versus agents) distracts from the true power held by buyers (studios, networks, streamers). This consolidation, he believes, constricts opportunities for artists and poses a significant challenge to the industry's relevance and importance. The potential acquisition of major studios, regardless of who acquires them, is seen as detrimental.
Acquisitions as a growth strategy and understanding 'backends'
Zimmer details UTA's strategy of significant diversification through 19 acquisitions in 13 years, moving into music, sports, and publishing. He realized that the traditional revenue streams for artists, like film and TV packaging and star "backends" (a percentage of profits), were diminishing due to streaming services buying out these rights. He learned the language of diversification and acquisitions from private equity and investment bankers to navigate this shift. He explains "backends" as a talent's share of profits, which became harder to achieve due to studio accounting practices (like imputed fees) and buyouts by streamers, diminishing the wealth generated from ownership positions.
The art of the deal: preparation and understanding needs
The secret to great deals, according to Zimmer, starts with "great clients" and an "undeniable talent and an undeniable opportunity." However, it fundamentally requires understanding the buyer's circumstances and needs. The goal is to create an environment where the client is happy, the buyer feels good about the outcome, and both can move forward productively. He acknowledges that while some deals require discomfort, most are resolved through mutual understanding and groundwork laid before the negotiation even begins. This pre-deal preparation is paramount, ensuring both sides grasp the realistic parameters and potential compromises.
Standing with talent, even when they falter
Zimmer recounts his support for M. Night Shyamalan during a challenging period, emphasizing that standing by talent is a core part of their business. Despite Shyamalan eventually firing him, Zimmer reflects positively on their successful run and his ability to maintain respect. This resilience and ability to maintain relationships through ups and downs are vital, as "bad stuff's going to happen." He also touches on the 'who' problem – the critical importance of choosing the right people, as mistakes in hiring or partnerships can cause significant drama. He admits to sometimes looking the other way with promising individuals who showed red flags, a lesson learned through experience.
Developing taste and embracing curiosity
For aspiring professionals in Hollywood, Zimmer advises developing taste and understanding "what's good" because unlike subjective preferences, there is "some objective good." He stresses remaining curious and reading widely, not just self-help books, but "great storytelling" as it's the foundation of their industry. He recommends "Lonesome Dove" for its literary experience and "I Know This Much Is True" for its insights into relationships and forgiveness. His own broad curiosity across art, sports, music, and books keeps him engaged and excited about his work and the world.
Mentioned in This Episode
●Products
●Software & Apps
●Companies
●Organizations
●Books
●Concepts
●People Referenced
Common Questions
Jeremy Zimmer began his career in the mailroom at William Morris in 1979 after a difficult period in his youth. This traditional entry point led to various opportunities within the entertainment industry.
Topics
Mentioned in this video
CEO of UTA, sharing insights on deal-making, talent representation, competition, and leadership in the entertainment industry.
A long-time competitor of Jeremy Zimmer in Hollywood, known for building Endeavor.
Famously started his career in the mailroom at William Morris.
His downfall prompted a company-wide email from Jeremy Zimmer addressing industry misconduct.
Mentioned for his venture into building a production studio in Louisiana.
Mentioned as an example of talent owning production facilities in Atlanta.
Known for owning production facilities and charging for cattle rentals in Texas.
Creator of Star Wars, whose deals included significant royalties.
An agent at ICM who made deals for George Lucas and the creator of Mission Impossible.
Represented by Ken Formlitch, leading to the Guns N' Roses reunion at Coachella.
Agency owner whose agency joined UTA; facilitated a GMC deal for LeBron James.
Athlete for whom Rich Paul and UTA facilitated a GMC deal.
Director mentioned as one of the incredible talents Jeremy Zimmer has worked with.
Director who experienced tough times, with Zimmer reportedly standing by him.
Co-founder of Section 8 Productions, along with Ben Affleck, represented by UTA.
Was mentioned by the host as someone who called Jeremy Zimmer an incredible dealmaker.
Director mentioned as one of the incredible talents Jeremy Zimmer has worked with.
Co-founder of Section 8 Productions, along with Matt Damon, represented by UTA.
Actress mentioned as one of the incredible talents Jeremy Zimmer has worked with.
His line about divas is referenced in the context of managing high performers.
Actor mentioned as one of the incredible talents Jeremy Zimmer has worked with.
Actor mentioned as one of the incredible talents Jeremy Zimmer has worked with.
Mentioned for a character used as an analogy for industry participants unaware of their own biases.
Jeremy Zimmer attended but did not graduate from this university.
United Talent Agency, where Jeremy Zimmer is CEO and built into a major player.
Screen Actors Guild, mentioned in the context of actor's union insurance payments.
An organization Zimmer had to apologize to after his controversial statement.
Mentioned as a company with smaller ad revenue compared to tech giants, highlighting industry shifts.
Mentioned as a movement for which corporations readily signaled virtue, contrasting with current corporate silence.
Automaker for whom LeBron James, facilitated by Rich Paul and UTA, did a deal.
The agency where Jeremy Zimmer began his career in the mailroom.
International Creative Management, an agency where Zimmer previously worked and faced a controversial situation.
Mentioned as a media outlet that would report on Zimmer's controversial 'rape and pillage' statement.
Mentioned as a platform with significant advertising revenue, contrasting with traditional studios.
Mentioned for its significant advertising revenue compared to traditional media companies.
Mentioned for its high advertising revenue.
Mentioned for its significant advertising revenue.
Mentioned as a company with smaller ad revenue compared to tech giants, highlighting industry shifts.
A platform for creators to build newsletters, recommended by the host.
A company that makes a smart mattress cover called the Pod Five, which the host uses and recommends.
A screenplay represented by UTA, which Jeremy Zimmer found to have an undeniable voice.
A film with a script that Jeremy Zimmer found compelling from the first ten pages.
A television show that depicts agents in a way Zimmer contrasts with reality.
Used as a humorous comparison to contrast with the reality of the National Institutes of Health.
A franchise for which Jeff Berg made a deal for its original creator.
A novel by Larry McMurtry recommended by Jeremy Zimmer for its literary experience.
Reunited and headlined Coachella, which coincided with Jeremy Zimmer's birthday when he realized his involvement in the music business.
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