Podcast Summary: The Town with Matthew Belloni Episode: Running a Major Talent Agency in 2025 With the New CEO of UTA
Release Date: June 11, 2025

Introduction

In this episode of The Town with Matthew Belloni, host Matt Belloni delves into the evolving landscape of Hollywood talent agencies by engaging in an insightful conversation with David Kramer, the newly appointed CEO of United Talent Agency (UTA). Released on June 11, 2025, the episode explores the significant changes and challenges facing major talent agencies in 2025, emphasizing UTA's strategic direction under Kramer's leadership.

Transition of Leadership at UTA

Matt Belloni (Host):
"It's an interesting time to run a Hollywood talent agency with issues like the content recession, transition from TV to streaming, labor unrest, and AI impacting the industry. Today, we're here with David Kramer, the new CEO of UTA, to discuss these dynamics."

David Kramer:
“This is day number six, Matt.” [04:07]

Kramer begins by addressing his recent appointment, highlighting the smooth transition process and the ongoing support from both clients and colleagues. He emphasizes that his ascent to the CEO position was part of a long-term succession plan, ensuring stability during this leadership change.

Notable Quote:
"Luckily for me, six days in, I've had no fires to put out." [04:17]

Diversification of Talent Agencies

Kramer outlines the significant transformation within UTA, shifting from a traditional focus on film and television packaging to a diversified portfolio encompassing various entertainment sectors.

David Kramer:
"When I started here, there were about 18 agents, and now we sit at about 2200 people with offices all over the world." [06:11]

He explains how UTA has expanded into areas such as sports, brand advisory, comedy touring, publishing, and digital content like podcasting. This diversification is presented as a strategic move to adapt to the changing entertainment landscape and to mitigate risks associated with the decline of traditional packaging models.

Notable Quote:
"The agency business, I think it's the most exciting time in the history of the agency business to be in it." [06:26]

Impact of Private Equity

A significant portion of the discussion focuses on UTA's relationship with private equity firms and how these partnerships have influenced the agency's growth and stability.

David Kramer:
"We were very thoughtful and deliberate about who we partnered with because, of course, like you, we heard a lot of different stories about private equity and what it would do to our business. That has not been our experience." [21:05]

Kramer details UTA's positive experiences with private equity partners, citing EQT as supportive without exerting undue pressure on the agency’s operations. He highlights the financial backing and industry expertise that these partnerships provide, enabling UTA to pursue diverse business ventures without compromising their core values and client relationships.

Notable Quote:
"They've been really great partners to us. But the one thing they haven't asked to do is run the business." [22:19]

Navigating the AI Revolution

The conversation shifts to the burgeoning role of artificial intelligence in the entertainment industry and its implications for talent agencies.

Matt Belloni:
"How is UTA prepping for the AI revolution? I was just reading this AI 2027 report and like, it's pretty scary what's coming." [17:50]

David Kramer:
"We have an obligation to protect our clients, protect their likeness, protect their work, protect their intellectual property. And that's not just our call, but we are partnering with a lot of tech companies and spending time with them to figure out where we can be playing a role, what we should be doing." [18:10]

Kramer acknowledges the dual nature of AI advancements, emphasizing both the opportunities for increased efficiencies and the threats to creative ownership and job security. UTA is actively engaging with technology partners to establish safeguards and advocate for industry-wide standards to protect their clients' interests.

Notable Quote:
"It is still the wild, wild west for sure in the AI world. And I think that the entire industry has to start to not just get used to the fact that it's here, but figure out what as an industry we want to do to protect our industry." [19:10]

Compensation Models with Streaming Services

Another critical topic discussed is the shifting compensation models from traditional upfront payments to backend deals tied to performance metrics controlled by streaming platforms.

Matt Belloni:
"What’s going on with how the big streamers are treating talent on payments? Are you guys open to backend models that will pay your clients less upfront in exchange for potentially more money based on data that is entirely in their control?" [23:33]

David Kramer:
"We have been pushing them to try to have more, more of a backend success-driven model." [24:07]

Kramer expresses UTA's openness to backend deals, provided there is transparency and fair alignment of success metrics. He underscores the importance of equitable participation from both the agency and the clients in revenue-sharing arrangements, aiming to foster mutually beneficial partnerships with streaming giants.

Notable Quote:
"The clients are hungry for that. They want to put risk back in. They want to see their work treated in a different way and be compensated in a different way." [25:20]

Future of the Talent Agency Landscape

Looking ahead, Kramer provides his perspectives on the potential consolidation within the talent agency industry and the sustainability of the current "big three" model (CAA, WME, and UTA).

Matt Belloni:
"What does the agency landscape look like in five years? Do we see more consolidation? Does CAA buy you? Do you see the chance of a fourth or fifth big agency emerging?" [26:12]

David Kramer:
"I think five years from now, you will still be looking at CAA and WME and UTA, and there will be the opportunity for some smaller agencies to grow, but it takes tremendous capital, tremendous time, and you got to be able to gather all the people to grow a big, huge agency." [26:33]

Kramer anticipates that while the big three will likely maintain their dominance, there remains room for ambitious smaller agencies to emerge through consolidation or innovative business models. He encourages entrepreneurial efforts within the industry, reflecting UTA's own journey from a small mailroom to a global powerhouse.

Notable Quote:
"When I got into the business, there were about seven [agencies]. But five years from now, there will probably still be the big three." [26:43]

Conclusion

Matt Belloni wraps up the episode by highlighting the critical insights shared by David Kramer, emphasizing the resilience and adaptability required to navigate the modern entertainment industry's complexities. The conversation underscores UTA's strategic diversification, proactive approach to technological disruptions, and commitment to fostering equitable partnerships within the evolving market dynamics.

Final Notable Quote:
"We are constantly evolving and in motion. If you represent great artists and do what they do, you can thrive even amidst significant industry changes." [15:29]

This episode offers a comprehensive examination of the current state and future trajectory of major talent agencies through the lens of UTA's leadership. For industry professionals and enthusiasts alike, Belloni's interview with Kramer provides valuable perspectives on managing a talent agency in an era marked by technological innovation and shifting market forces.