In a letter sent to CBS on Monday (via The Hollywood Reporter), Sony stated it was delivering to CBS one last week of shows, after which Sony will directly deliver episodes of the series to broadcasters. “Please be advised that in light of the failures of CBS Studios Inc. (‘CBS’) to live up to its contractual obligations, Sony Pictures Television Inc., Califon Productions, Inc., and Jeopardy Productions, Inc (collectively, ‘Sony Pictures’) have assumed global distribution functions for Wheel of Fortune and Jeopardy! … including, but not limited to, content delivery, advertising sales, marketing, promotions, show integrations, affiliate relations, public relations, domestic and foreign licensing, and foreign format licensing,” the letter reads in part.
This power play was met with ire from CBS. The company sent its own message to clients stating, “We are aware Sony has informed you that it has purported to assume the distribution functions for Wheel of Fortune and Jeopardy!, and that it has terminated CBS’s distribution arrangement. This communication is false, inappropriate, and ineffective. Sony has no rights under the distribution agreements to terminate them, and CBS remains the distributor for the Series, notwithstanding any communications from Sony to the contrary. Any contention by Sony that it has reclaimed the distribution rights is subject to ongoing judicial proceedings, and CBS will be seeking immediate relief from the appropriate courts. All business should continue in the usual course.”
Sony’s problems with CBS are myriad. For one, Sony says CBS overreached its distribution agreement by making deals in Australia and New Zealand, and licensed streaming rights it doesn’t own. Sony also claims that after laying off staff at CBS’ parent company Paramount Global, Sony was left to pick up the slack for marketing, promotion, and even “negotiations with major station groups for the renewals of the shows,” per its lawsuit (via The Los Angeles Times). CBS, meanwhile, argues that it remains an effective distributor for the shows and compliant with the existing agreements. Its countersuit alleges that Sony is looking for backdoor ways to control the shows because the company failed to buy back the distribution rights in previous negotiations.
