Loaning Talent to Agencies Is a Race to the Bottom, AICP Warns Members

LBB has obtained a memo in which AICP president and CEO Matt Miller warns production companies against ‘loaning out’ their talent to agencies and in-house production units for white-label’ work.

In an email sent on March 7th to members of the association he stated that "...the idea of ‘loaning-out’ talent that you represent to entities that you compete with should be unthinkable when contemplating the longevity of your business."

Addressing the “defining crossroads” of the industry’s interesting new models and opportunities, the CEO’s note made it clear that the AICP believes “loaning out your talent is not one of them”. Furthermore, he believes that much of the value that independent production and post production companies possess lies in the talent that they represent – and their ability to bring out the best results from that talent. "Despite the dizzying pace of change in much of the media world, this truth remains a constant," the note said.

The message continued, "There is no scenario where agreeing to any ‘loan-out’ or ‘white-label’ situation adds value to your company or truly helps any business relationship. The reasons for these actions are clear – it is to compete with you in the future. Entering into these arrangements is therefore a race to the bottom; there is no middle ground on this."

The bulletin also claimed that with loaning talent to in-house companies, coercion occurs frequently – “by suggesting that you are not a real ‘partner’ if you don’t comply with their request; or even a threat that you may never see any more work from them; or as an enticement, that the agency will hire you for future work…”

The association previously expressed its stance against loaning talent, initially sending out a similar message to AICP members a year ago.

The CEO’s latest note stated that, since the first email in February 2024, holding company studios have proliferated and grown, and it also claimed that some have altered how they list credits for the work done under their banners “in order to pump up their perceived involvement in the work.”

“There are instances where the borrowing entity takes the talent’s name or company affiliation off the work to obscure the source, thereby claiming the work of your company or the relationship with your director, editor, or designer as their own. The term often used for this is white-labelling.”

He also highlighted a “clear conflict of interest” with agencies and holding company divisions having an element of control over selecting competitive pitch winners.

Describing this as “boorish behaviour”, the note hypothesised that clients will soon recognise the agencies’ inability to separate their primary role of working in the client’s best interests from their own drive for profitability in the production space. “This is not a long-term model, and there is a good chance that outside forces will be the arbiter of this situation even before it dies of its own weight.”

The email also included a recommended response for members to use when approached by an agency for a talent loan. As well as a reminder for signatories to the Directors Guild of America (DGA) Commercials Agreement, that engaging in the employment of directors when your company is not the bona fide producer can lead to the termination of signatory status and strong punitive action if entering into this activity with non-signatory companies.

While this is the expressed view of Matt Miller and the AICP, the message did close with a disclaimer affirming that there is no formal agreement in place, and that the decision to loan or not loan out talent resides with the AICP member company.