As a long-time enthusiast of game shows, particularly “Wheel of Fortune” and “Jeopardy!”, I find it disheartening to learn about this legal squabble between Sony and CBS. Having grown up watching these iconic shows, I can’t help but feel like a piece of my childhood is being tugged at.


On Thursday, Sony brought forth a legal action against CBS, alleging instances of self-dealing and falling short in optimizing profits from the syndication of “Wheel of Fortune” and “Jeopardy!” gameshows.

For several decades, Sony and CBS have collaborated on timeless game shows, with Sony taking charge of production and CBS managing distribution. However, a lawsuit claims that CBS has experienced multiple rounds of layoffs and internal corporate chaos in recent years, which supposedly hinders them from effectively disseminating the shows.

A court case, lodged in Los Angeles Superior Court, further claims that Sony discovered CBS secretly made deals in New Zealand and Australia without authorization. These deals allegedly earned CBS $3.6 million in commissions. Sony requested the money back, but CBS refused, stating that Sony had already received its due share of the earnings, as per the lawsuit.

I stand by Sony’s assertion that what they’ve uncovered is just the beginning, suggesting a wider scope of misbehavior on CBS’s part. One of the claims against them is that CBS neglected to secure premium pricing for their shows, both in the U.S. and abroad.

According to Sony’s legal team, the significant reduction in CBS’s workforce and organizational changes have allegedly hindered CBS from fulfilling their contractual duties.

In addition to its accusations, Sony claims that CBS favors its own self-produced programs over “Wheel of Fortune” and “Jeopardy!” during licensing talks. For example, Sony asserts that these game shows have been presented together with less popular CBS programs such as “The Hot Bench” and “The Drew Barrymore Show.

As a devoted moviegoer putting it in my own words, I’d say: “According to this lawsuit, CBS is grouping together hit shows like ‘Jeopardy!’ and ‘Wheel of Fortune’ with less-watched CBS-owned programs for broadcast. This bundling strategy allegedly lowers the potential earnings these popular shows could have generated if they were sold independently.

Additionally, the lawsuit claims that CBS intentionally positions its fully owned programs such as “Entertainment Tonight” in the highest-rated television markets, while assigning “Wheel of Fortune” and “Jeopardy!” to stations with lower ratings. According to Sony, this practice has over time negatively impacted the performance of these shows and, consequently, Sony’s financial earnings.

The lawsuit claims that top-tier broadcast networks earn more from ad revenue and usually have higher licensing costs. Additionally, being placed on these highly-rated networks helps increase a show’s earnings over time by reaching larger audiences, which results in higher local advertising rates due to the increased viewership.

In the late ’70s and early ’80s, “Jeopardy!” and “Wheel of Fortune” were created and broadcasted by Merv Griffin Enterprises. These shows initially aired through King World. Sony acquired MGE in 1994, and CBS bought King World in 1999. As a result, Sony and CBS gained control over these popular game shows.

Sony argues that some of CBS’s current difficulties have contributed to the mismanagement of their shows, as per the lawsuit. It is stated in the complaint that up until 2022, CBS maintained a separate promotions team specifically for “Jeopardy!” and “Wheel of Fortune.

However, following the merger of CBS with Viacom to create Paramount Global, there occurred extensive job cuts, also known as “sweeping layoffs.” Interestingly, the marketing duties were then taken over by the CBS marketing team members who were currently involved in promoting CBS network shows, as stated in the lawsuit.

According to the lawsuit, CBS didn’t prioritize ‘Jeopardy!’ and ‘Wheel of Fortune’, which are shows owned by Sony Pictures, highly. This meant they didn’t take adequate steps, let alone the best efforts, to properly market and publicize these premium TV content that they were supposed to distribute.

Further layoffs came this year, with Paramount Global’s sale to Skydance.

Sony claims that CBS is now unable to meet their obligations under the agreement, as CBS has allowed their contract with Nielsen to expire – a move which weakens their capacity to manage advertising sales.

CBS did not immediately comment on the suit.

Read More

2024-10-31 23:18