For this week's weekly activity, I want you to think in the space of game theory that we are exploring in Chapter 10. Respond to this memo as if you are the Director of Content Acquisition and recommend your negotiating strategy, clarifying on whether TWC should accept the $1.25 and explain your reasoning.

I'm not looking for a right/wrong answer with this assignment, I just want to see a thorough and well-thought out response to this request. Be creative, professional and have fun with it!

For this week's weekly activity, I want you to think in the space of game theory that we are exploring in Chapter 10. Respond to this memo as if you are the Director of Content Acquisition and recommend your negotiating strategy, clarifying on whether TWC should accept the $1.25 and explain your reasoning. I'm not looking for a right/ wrong answer with this assignment I just want to see a thorough and well-thought out response to this request. Be creative, professional and have fun with it.I Memo 10 To: Director, Content Acquisition From: Chief Operating Officer Re: Retransmission Negotiation We are In continued negotiations with one of the major broadcast network affiliates on the West Coast over retransmission fees and have not been able to reach an agreement. The current contract ends on August 31 of this year. The current retransmission fee is $1 per subscriber per month. The network afliate is demanding $1.25 per month and has cited the fact that it hasjust picked up rights to broadcast the NFL games for the local franchise. We have counter-offered $1.05 per subscriber, but this was immediateiy rejected. We currently have 810.000 cable subscribers in the affiliate's market, which makes up about 52 percent of all households in the area. Other househoids have either cut the cord or are using a competing service (DirecTV, Dish Network. or Verizon). All of our competitors In the market have contracts with the network affiliate through the end of next year. Based on past experience in other markets, our analysts estimate that losing access to the network affiliate will cost us 3 percent of our customer base within the first week, and another 2 percent If the dispute lasts a month. The network affiliate will lose some revenue as well since half of its viewers will lose access to its programming. Should we accept the $1.25 monthly fee? What should our negotiating strategy be, and how do you anticipate the affiliate will respond