Can anyone here explain the attraction of major networks like Publicis & Omnicom making large production units like PXP & Omnicom Production? What’s the serious business case?

Also wondering what the hierarchy in those places is like in terms of HOP’s, EP’s and such. Especially as it relates to the agencies within those holding companies?

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Money. They claw more business away from from post houses and production companies which becomes an additional revenue stream. Clients are cool with it because the rate cards are agreed to in advance and generally cheaper because it’s in house talent.

Org structure is a mess as you’ve got EPs everywhere but they each have a weird niche (agency-side EP, in-house-post EP, in-house-live-action EP) and they all try to tell each other how to do each other’s jobs.

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It’s all about the Benjamins. Mo money mo money. And good f’ing luck with the triple bids. Any production company should run away as the whole process is fixed.

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As mentioned above, money. Holding companies used to make a huge, enormous, unthinkable amount of money on media buys. Then the brands started to get wise, and that gravy train ended. The next large big ticket pool of dollars is production, so they’re swimming and double dipping in that now instead.

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Is there a career path or mentorship doing it this way? It just feels like you end up being a cog in a machine.

Agree! To me it also hurts creatives and clients too. I can’t image creatives and producers not having a regular rapport. From the client side, how does a “next producer up” mentality from a massive group of producers get to know a client’s ins and outs? Seems like this also sucks for the work.

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Imagine eating the same meal day in and day out.

Production Companies charge a 25% fee on top of hard costs. Why wouldn’t these networks want to take that instead?

It’s all a money and markup game.

Sure the networks want the cash grab but what the clients aren’t realizing (just yet) is that they’re getting far subpar work because of it. Eventually, they will catch on.

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