Sony Pictures Television is suing CBS, alleging that CBS failed to honor its distribution contract Danger! AND Wheel of Fortune in union.
Sony produces the two long-running game shows, which are perennially among the most-watched syndicated shows on television. The lawsuit, filed Thursday in Los Angeles Superior Court, alleges that CBS missed a contract deadline to distribute the two programs to local television stations in the United States and entered into unauthorized distribution deals abroad.
“As alleged in our complaint, CBS egregiously reduced the value and profitability of these shows in favor of its own self-interest,” Sony said in a statement. “CBS pocketed millions in distribution fees from unauthorized deals, licensed shows nationwide well below market value, and favored its wholly owned shows in advertising sales and distribution, including the other things. Additionally, CBS gutted the teams responsible for fulfilling their contractual obligations, requiring us to step in at our own expense. After repeated attempts to resolve the matter amicably, we are left with no option but to take legal action today.”
The Hollywood journalist also reached out to CBS for comment.
Wheel of Fortune AND Danger! they have aired in syndication for more than 40 years, and Sony's distribution deals with CBS and its predecessors (CBS bought the shows' original distributor, King World, in 1999) also date back to the early 1980s. Under the deal, CBS' syndicated arm, CBS Media Ventures, licenses shows to local stations and sells national commercials in exchange for 35 to 40 percent of the grosses.
Sony claims CBS failed to meet its contractual duty to use its “best efforts” to make those revenues as large as possible. The complaint alleges that CBS licensed the shows at below-market rates and failed to maximize the two shows' potential advertising revenue. Sony also alleges that CBS entered into unauthorized distribution deals in Australia, New Zealand and other international territories that exceeded the two-year contractual limit – and says CBS Media Ventures admitted as much in 2023 – but has not turned over any resulting receipts from such agreements. .
Sony, which is seeking monetary compensation, also claims that recent layoffs at CBS' parent company, Paramount Global, have adversely affected units responsible for distribution, marketing and ad sales for the two game shows, further limiting the CBS's ability to meet the contract deadline. .