Sony Pictures Television has filed a lawsuit against CBS Studios, alleging the network has failed to maximise revenues and engaged in self-dealing in its distribution of popular game shows “Jeopardy!” and “Wheel of Fortune.”
The lawsuit, filed in Los Angeles Superior Court, claims CBS has made over $1 billion in profit from a 35-year distribution agreement while undervaluing the shows’ licensing fees and advertising potential. Sony argues that CBS’s recent corporate restructuring and layoffs have severely impacted its ability to properly distribute the programs.
According to the complaint, CBS entered unauthorised international distribution deals in Australia and New Zealand, pocketing $3.6 million in fees without proper compensation to Sony. The studio also alleges CBS has been licensing the shows domestically below market value and bundling them with less popular CBS-owned programs like “The Hot Bench” and “The Drew Barrymore Show.”
Sony claims that when it became directly involved in negotiations with ABC stations, licensing fees grew by 17%, compared to CBS’ projected flat to 2% growth. The lawsuit cites recent layoffs at CBS parent Paramount Global, which eliminated 2,800 positions, as contributing to “dismal performance” in fulfilling distribution obligations.
CBS strongly denied the allegations in a statement, saying it has been an “accomplished distribution partner and thoughtful steward” for both shows over 40 years. The network argues it holds perpetual distribution rights and claims Sony “simply doesn’t like the deal the parties agreed to decades ago.”
