Sony Pictures Television, the producer of Wheel of Fortune and Jeopardy!, is suing CBS for breaching their distribution contract. In a lawsuit filed in Los Angeles Superior Court, Sony has claimed that CBS made unauthorized licensing deals for the game shows and deliberately focused on promoting its own content over Sony’s shows.
The lawsuit stated that the licensing deals for the game shows in foreign markets like New Zealand and Australia were allegedly made without Sony’s approval. This violated their contract with CBS which had placed a two-year restriction on the shows’ distribution in international markets. According to Sony, CBS withheld over $3.6 million from the said deals. The lawsuit also reveals that CBS receives about 35% to 40% commission fees from local stations airing the shows.
According to Courthouse News, “These unauthorized deals are just the tip of the iceberg.” CBS has allegedly licensed the shows at below-market rates and has failed to maximize advertising revenue. The representatives for Sony revealed that upon confrontation, the president and CEO of CBS Media Ventures contended that Sony Pictures had received its share of all the revenue it was entitled to receive under the unauthorized deals when that wasn’t the case. The lawsuit further points to CBS’s internal challenges, such as recent layoffs, which Sony argues have impacted the marketing and distribution of Wheel of Fortune and Jeopardy!
CBS Responds to Sony’s Allegations Amid Contract Dispute
Image via ric McCandless/Sony Pictures Television
The lawsuit comes at a time when CBS is going through a transition. According to Fortune, Paramount Global, CBS’s parent company, is currently in talks with Skydance Media for a potential merger, which could shift priorities and resources. Additionally, Paramount has initiated the next round of layoffs with the goal to cut 15% of its U.S. workforce, as reported by Deadline. The wave of layoffs at CBS has reportedly impacted teams responsible for marketing, ad sales, and distribution for Sony’s shows.
CBS, however, has pushed back against Sony’s accusations. In a public statement, as reported by Variety, CBS refuted all the claims made by Sony about them not using their best efforts to distribute the two programs. The representative for the network added that CBS did not fail to abide by its obligations laid out in the contract with Sony and that they look forward to defending themselves in court.
CBS also claims that Sony’s dissatisfaction does not come from CBS’s recent actions but it’s because they don’t like certain terms of the deal the two parties agreed to decades ago. CBS further pointed out the shows’ success and noted that their work has helped Sony build Jeopardy! and Wheel of Fortune into franchises. To conclude, CBS noted its critical role in transforming Sony’s shows into cultural icons and delivering the network billions of dollars of revenue.
Catch Jeopardy! on weekdays at 7 PM EST on YES TV and Wheel of Fortune on Mondays at 7:30 PM EST on ABC.
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Jeopardy! |
|---|---|
| Cast/Host | Ken Jennings |
| Original Release | March 30, 1964 |
| Stream On | Syndicated (currently airs on ABC stations) |
| Created by | Merv Griffin |
| Produced by | Sony Pictures Television |
| Based On | Original game show format created by Merv Griffin |
| Plot Summary | A quiz show where contestants answer in the form of a question to win cash prizes |
| Musical Elements | Iconic theme song “Think!” composed by Merv Griffin |
| Current Status | Airing new episodes in syndication |
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