After Warner Bros. Discovery (WBD), who sued Paramount over the streaming rights of “South Park”, is now retaliating.
On Wednesday, April 19, Paramount counter-sued WBD, alleging that the company is withholding two required payments of $26 million each, bringing the total unpaid fees to $52 million.
“South Park Studios adhered to the terms of the written Terms sheet.” WarnerMedia didn’t,” states the countersuit. Warner Media has refused to pay South Park Studios for the rights to exploit that content. This is despite the fact that they have profited continuously from the 300+ South Park Episodes still available on HBO Max.
The counterclaim filed before the New York Supreme Court alleges that unpaid charges cover 318 episodes “South Park” streaming via HBO Max.
The episodes that make the more than 300 episodes are from seasons 1 through 26. HBO Max also streams “6 Days to Air”, a documentary about the making South Park that Paramount mentions.
The report added that “to purportedly justify their non-payment of South Park Studios contract, WarnerMedia has claimed that South Park Studios had breached certain alleged agreements contained in the Term sheet.”
WBD paid WBD WBD $500 Million in 2019 for streaming rights to 23 seasons of the animated sitcom and three additional seasons (seasons 24, 25) which have not yet been broadcast. The contract was supposed to run until 2025.
WBD filed a suit in February of this past year. lawsuit Deadline obtained a document accusing Paramount of breaching an agreement. It claimed Paramount stole content and put it on its own streaming service Paramount+. WBD claimed that Paramount released new “South Park” specials on Paramount+, which WBD believed were meant to be streamed through HBO Max.
Paramount Studios MTV paid Paramount $65 million as a record amount in 2021. $900 million In a deal, Trey Parker and Matt Stone, the creators of “South Park”, have signed. The deal runs until 2027 and includes six seasons of South Park as well 14 streaming movies made exclusively for Paramount+.
“We believe Paramount, South Park Digital Studios and WBD embarked on a multi-year scheme of unfair trade practices and deception as well as flagrant and repeat breaches of our contract that clearly granted HBO Max exclusive rights to stream the existing library of South Park and the new content,” said a WBD spokesperson in a TechCrunch announcement.
“Warner Bros. Discovery’s claim Paramount Global was required to deliver more South Park material is unfounded and does not support the contract between the parties. It does not justify WBD’s refusal to pay for the extremely valuable content that it has received and from which it continues to profit,” a Paramount representative stated in a release.
WBD claimed in its February 20, 2023 lawsuit the company bid for “South Park’s” streaming rights as it was assured each of the remaining 3 seasons would have 10 episodes. The company claims Paramount failed to deliver certain episodes.
WBD stated that it “continues to take on damages exceeding $200 million due to defendants’ misbehavior,” according the lawsuit. According to the company, the new episodes have a higher value than the older ones. WBD overpaid for the streaming right.