Final Jeopardy? Sony and CBS' Battle Over Distribution Rights Intensify
CBS may not have any vowels, but they're going to continue to try to successfully solve the puzzle of how to keep its distribution rights for Wheel of Fortune and Jeopardy! Their fight with Sony, which includes lawsuits and counter-lawsuits filed last year, added a bonus round with a new wrinkle.
On February 3, 2025, Sony sent a formal letter to CBS informing them that they intended to cease sending the weekly episodes of the two game shows. This upset an arrangement in place for decades and intensified the bitter fight already taking place in court. CBS and their parent company Paramount vowed to fire back with a restraining order. Will Sony's audacious move be a big winner?
At least so far, the answer is no. On February 6, Los Angeles Superior Court Judge Kevin C. Brazile issued an injunction against Sony, preventing them temporarily from distributing the shows themselves. But the case is not over yet.
Spin the Wheel
Both Wheel of Fortune and Jeopardy! are long-running game shows with massive viewerships. The former is based on luck and puzzle-solving, while the latter uses trivia questions that increase in difficulty combined with opportunities to press one's luck. Both shows feature a new episode on most weeknights during the year.
Since neither show is affected by current events, episodes are shot in advance. First-run syndication distribution isn't network-based but instead involves local TV stations in each market. Sony produces the episodes, and CBS, under CBS Media Ventures, handles the advertising sales, syndication sales, actual distribution, and marketing. CBS receives a 35% to 40% share of the receipts.
This system was upended with Sony filing a breach of contract suit against CBS in Los Angeles Superior Court in October 2024. In the lawsuit, Sony alleged that CBS was withholding "ill-gotten" fees earned through unauthorized distribution to places like Australia, New Zealand, and South Africa.
The suit goes on to accuse CBS of reducing the rates charged for Wheel of Fortune and Jeopardy! while increasing what they charge for other shows that CBS fully owns. It claims that CBS bundles its less popular shows in packages with the game shows.
In the letter sent Monday, Sony also asserts that CBS damaged the economic potential of the shows by breaking with Nielsen in November of 2024, a company that supplies viewership ratings that influence advertising rates.
CBS responded with a countersuit in October of 2024. They claimed that Sony's lawsuit was meritless and based on failed negotiations between the two for Sony to buy the distribution rights from CBS.
In response to Sony's letter on February 3, CBS announced that they had told their affiliates that they were the only legal source for distribution of the game shows. They also revealed an extremely well-timed agreement with Nielsen to begin using their services again. CBS dangled the possibility of filing a restraining order against Sony to block any attempt to distribute the shows themselves.
What Is "See You In Court"?
Both shows are absolute ratings juggernauts. Wheel of Fortune overtook Jeopardy! last October under new host Ryan Seacrest, who replaced departed host Pat Sajak. The shows trail only NFL broadcasts when it comes to ratings.
Given the apparent animosity on display and the moves both CBS and Sony are making, it seems like numerous court appearances are going to be required to settle the matter. Any delay in the distribution of fresh, new episodes would hurt both sides. Will the threat of reduced viewership facilitate negotiation, or will both sides keep hoping to hit the daily double?
Related Resources
- What Is the Most Common Legal Remedy for Breach of Contract? (FindLaw's Small Business Law)
- What Is Communication and Media Law? (FindLaw's Learn About the Law)
- Do I Need To Pay Taxes on Game Show Prizes? (FindLaw's Law and Daily Life)
