WarnerBros Discovery takes legal action against Paramount over ‘South Park’ streaming rights

Warner Bros. Discovery sues Paramount over 'South Park' streaming rights

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Stan Marsh, Kyle Broflovski, Eric Cartman and Kenny McCormick go to The Paley Center for Media provides unique retrospective occasion honoring 20 seasons of ‘South Park’ at The Paley Center for Media on September 1, 2016 in Beverly Hills, California.

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WarnerBros Discovery taken legal action against Paramount Global wanting to implement the streaming rights of “South Park,” setting the phase for a legal fight in between 2 media leviathans as the streaming wars heighten.

On Friday WarnerBros Discovery submitted a suit versus Paramount, South Park Digital Studios and MTV Entertainment looking for numerous countless dollars for what it thinks was a breach of agreement.

Warner stated it concurred in 2019 to pay more than $500 million, or around $1.69 million per episode, to license “South Park,” the longstanding animation including bad-mouthed grade school kids that has actually been airing on Paramount’s cable-TV network Comedy Central for years, for its own streaming platform HBO Max.

During the bidding procedure for the “South Park” rights, the filing stated, Paramount presumably asked whether WarnerBros Discovery would think about sharing the rights to the program for Paramount’s own streaming service.

“Warner/HBO rejected the proposition as a ‘non-starter,'” according to the suit.

However, Warner declared in its suit that Paramount went back on its agreement and kept “South Park” specials and other associated material. The match indicates Paramount’s own recently established streaming service, Paramount+, as the factor.

A Paramount representative rejected the claims made by Warner in Friday’s suit, including that Warner has actually stopped paying licensing charges.

“We believe these claims are without merit and look forward to demonstrating so through the legal process,” a Paramount representative stated in a declaration. “We also note that Paramount continues to adhere to the parties’ contract by delivering new South Park episodes to HBO Max, despite the fact that Warner Bros. Discovery has failed and refused to pay license fees that it owes to Paramount for episodes that have already been delivered, and which HBO Max continues to stream.”

Although the contract required HBO Max to get the very first episodes of the most recent season of “South Park” in 2020, Paramount stated it alerted Warner in March that it would stop production of the season as an outcome of the pandemic

Warner then declares that “South Park” and its developers moved on with the production of other kinds of material, such as 2 pandemic-themed specials that aired in between September 2020 and March2021

Warner additional declares the plan remained in the works when Paramount’s subsidiary MTV signed a handle the “South Park” developers in 2021, which required unique material for Paramount+, apparently worth $900 million.

“We think that Paramount and South Park Digital Studios started a multi-year plan of unreasonable trade practices and deceptiveness, flagrantly and consistently breaching our agreement, which plainly offered HBO Max unique streaming rights to the existing library and brand-new material from the popular animated funny South Park,” a WarnerBros Discovery representative stated in a declaration Friday.

The face-off comes as streaming services have actually been competing for customers and wanting to reach success in the future. Media business have actually been investing billions of dollars on material to draw in clients, and have actually just recently started cutting expenses as increased competitors has actually resulted in slowing customer development.

This week WarnerBros Discovery reported a huge loss in its quarterly incomes as the business deals with a softening marketing market, which has actually weighed on its earnings. The business stated, nevertheless, that it included 1.1 million international streaming customers, bringing its overall to 96.1 million for services consisting of HBO Max and Discovery+. Losses for the streaming company likewise narrowed to $217 million for the duration, “a $511 million year-over-year improvement.”

WarnerBros Discovery prepares to introduce a combined HBO Max and Discovery+ streaming service this spring.

Meanwhile, Paramount stated recently Paramount+ hit 56 million customers in its newest quarter. The business prepares to increase the cost of its streaming service when it integrates Paramount+ and Showtime later on this year. Paramount likewise stated it was impacted by the hard advertisement market.