As a long-time enthusiast of game shows, I’ve witnessed the rise and fall of many formats over the years. The ongoing saga between Sony Pictures Television and CBS over “Wheel of Fortune” and “Jeopardy!” is like watching an epic drama unfold in real life.
Sony Pictures Television, known for producing popular game shows like “Wheel of Fortune” and “Jeopardy!”, has filed a lawsuit against CBS, the shows’ distributor, alleging a violation of their contractual agreement.
The lawsuit filed on Thursday in Los Angeles Superior Court states that Sony asserts CBS made agreements for the licensing of two highly successful TV series without authorization, and subsequently paid itself a fee from these deals. Furthermore, it is claimed that CBS licensed these shows at rates lower than the market standard and neglected to optimize advertising earnings.
According to the lawsuit, it’s claimed that CBS has been unfairly devaluing these shows for their own advantage, disregarding their contractual duties.
As per the lawsuit, it’s stated that CBS, currently under the ownership of Paramount Global and pending acquisition by Skydance Media, collects a commission ranging from 35% to 40% on the fees television stations pay for airing two specific shows.
Nonetheless, Sony claims they discovered last year that CBS had made unauthorized agreements to license shows in New Zealand and Australia, breaching their contract. Furthermore, Sony alleges that CBS failed to remit the earnings from these deals – approximately $3.6 million – to them.
Sony described the breach as merely a small portion of a larger issue, implying that there were more questionable activities within their network. One such activity was them securing below-standard prices for shows both internationally and domestically. Additionally, they often prioritized their own shows, owned entirely by them, during licensing negotiations.
Sony alleges that the upheaval at CBS, which led to numerous job cuts, has adversely impacted the teams responsible for advertising, marketing, and distribution of the two game shows, in addition to those tasked with managing their international distribution duties.
In response to Sony’s accusations, CBS asserted that their basis for these claims stems from their displeasure with the agreement the parties made years ago, which they didn’t find favorable.
CBS, along with its earlier company King World, have been trusted partners and careful guardians of ‘Wheel’ and ‘Jeopardy!’ for over 40 years within the syndication market. As a result, they’ve played a significant role in turning these shows into successful franchises, making popular series into cultural sensations, and generating billions of dollars in revenue for Sony. (CBS statement)
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2024-11-01 23:01