Sony on Thursday filed a lawsuit in Los Angeles Superior Court against CBS, alleging that the network engaged in acts of “self-dealing” in the distribution of the popular game shows Jeopardy! and Wheel of Fortune.
A decades-long agreement between the companies has Sony handle production of the shows while CBS handles distribution.
Sony in court documents that CBS violated agreements by making unauthorized transactions in Australia and New Zealand that netted them $3.6 million in revenue that they subsequently refused to share, according to Variety.
Sony said in legal documents that CBS refused to split any of the revenue when asked, as its position was that Sony had already been paid fairly under its agreement.
Sony said the deal in question was just “the tip of the iceberg” in its claims against CBS, stating that corporate chaos and ongoing layoffs have severely hampered its ability to carry out its distribution duties.
Sony on Thursday filed a lawsuit in Los Angeles Superior Court against CBS, alleging that the network engaged in acts of “self-dealing” in the distribution of the popular game shows Jeopardy! and ferris wheel
A decades-long agreement between the companies has Sony handle production of the shows while CBS handles distribution. Vanna White photographed in 2017 in Orlando, Florida
“CBS’s massive staff cuts and restructuring have undermined its ability to meet its contractual obligations,” Sony’s legal team said.
CBS has failed to sell the shows at maximum value domestically and abroad, Sony said, adding that CBS has financially complicated licensing deals related to in-demand game shows.
CBS attempted to attach struggling original shows like The Drew Barrymore Show and The Hot Bench to the rights to Jeopardy! and Wheel of Fortune, Sony said.
Sony’s legal team told the court that ‘the CBS package of Jeopardy! and Wheel of Fortune with comparatively unpopular CBS-owned shows reduces the gross revenue CBS would earn from the shows if they had been sold independently.
Sony said in legal documents that CBS manipulated the performance of game shows by assigning them to weaker stations, while its original shows like Entertainment Tonight were placed on top-performing stations in their respective markets.
Sony’s legal team told the court that the business practices CBS has engaged in, as alleged in the lawsuit, have cost it money and harmed both game shows.
“More popular network affiliates generate more advertising money and typically also pay higher licensing fees,” Sony said in documents.
He said, “Placements on top-rated network affiliates also help maximize a show’s long-term revenue by ensuring the series is exposed to the largest audience in the market and, in turn, higher advertising rates on the local market.
CBS has failed to sell shows at maximum value domestically and abroad, Sony said. Ken Jennings photographed on Jeopardy! place
CBS has financially complicated licensing deals related to game shows, Sony said
Both hardcore shows were initially created and produced by Merv Griffin Enterprises in the late 1970s, with the King World company handling distribution duties.
Merv Griffin Enterprises was acquired by Sony in 1994, five years before CBS’s acquisition of King World in 1999, leading to the current deal, which has spanned 25 years.
Sony said CBS’ internal problems have had an impact on the revenue generated by the shows, noting that they had dismantled a marketing team for the shows in 2022.
Sony said the merger of CBS and Viacom to form Paramount Global initially led to “widespread layoffs,” and more layoffs when Paramount Global sold to Skydance.
CBS then recruited its marketing staff for additional duties related to the game shows, which were “low on the priority list.”
“As a result, (CBS) failed to make reasonable efforts (let alone ‘best efforts’) to effectively market and promote the Sony Pictures-owned premium content that CBS was charged with distributing,” Sony said.
CBS said in its response that it “looks forward to vigorously defending this lawsuit in court.”
The network said: ‘For more than 40 years, CBS and its predecessor company, King World, have been consummate distribution partners and thoughtful stewards of Wheel and Jeopardy! in the syndication market.’
Both stalwart shows were initially created and produced by Merv Griffin Enterprises in the late 1970s. The late Griffin pictured in 1978
CBS said that “this work has helped turn shows into franchises, transform popular series into cultural icons, and generate Sony billions of dollars in revenue.”
‘Our contract is clear: we own the distribution rights to these series in perpetuity. We strongly reject any assertion by Sony that we did not use our best efforts in distributing the programs or that we failed to meet our obligations under the agreements.’
CBS said Sony’s claims “are based on the fact that they simply don’t like the deal the parties agreed to decades ago.”
