Summit 2018: Michael Ovitz & GaryVee on Recognizing Talent and Opportunity

Packaging Power

Gary Vaynerchuk and Michael Ovitz explore the transformative power of packaging and merchandising in the entertainment industry. Gary highlights Michael's role in revolutionizing Hollywood by packaging talent and intellectual property, which shifted leverage from buyers to creators 1. This strategic approach allowed creators to extract more value from their work, similar to how players' unions benefit athletes. Michael explains that by adding elements around an idea before presenting it to buyers, they minimized the buyers' options, creating a powerful negotiating position 2.

What Michael spearheaded was a packaging of talent, the IP, not the distribution. That gave his clients and his organization the leverage and was able to extract out dollars from the system that they were entitled to, that they didn't get in the past.

--- Gary Vaynerchuk

This innovative approach remains relevant today, even in a digital landscape.

   

Persistence Pays

Michael Ovitz shares a compelling story of persistence with the making of "Rain Man," illustrating the importance of unwavering belief in one's vision. Despite multiple rejections and challenges, including a screenplay initially turned down by Warner Brothers, Michael's team persisted, eventually casting Dustin Hoffman and Tom Cruise 3. The film's initial failure was overcome by word-of-mouth success, ultimately grossing over a billion dollars and winning six Academy Awards 4.

If you believe in something, just don't give up. We were told, don't do it. We were told we'd get fired. We were told that by the first director the movie wasn't makeable.

--- Michael Ovitz

This story underscores the value of persistence in achieving success against the odds.

   

Cola Wars

In another example of persistence, Michael Ovitz recounts his involvement in the Cola Wars, where he took on a challenge without commission to help Coca-Cola regain its competitive edge against Pepsi 5. Despite the fierce rivalry, Michael's willingness to explore new ideas and strategies led to securing the account for Coca-Cola. This story highlights the relentless drive required to innovate and succeed in highly competitive environments.

Our goal at the time was not to be in that business, but my goal was to always listen for new ideas and new things that we could do every day.

--- Michael Ovitz

Such persistence and adaptability are crucial for overcoming obstacles and achieving long-term success.