Oops, Disney's got to pay.
Posted: Wed Jul 07, 2010 3:09 pm
http://www.businessweek.com/news/2010-0 ... ate1-.html
"Disney Loses ‘Who Wants to Be a Millionaire’ Trial (Update1)
July 07, 2010, 3:02 PM EDT
By Edvard Pettersson and Tori Richards
July 7 (Bloomberg) -- Walt Disney Co. was found liable for not paying the U.K. creators of “Who Wants to Be a Millionaire” their share of profits from the quiz show broadcast on Disney’s ABC network.
A jury in Riverside, California, today awarded $269.4 million in damages to Celador International Ltd. The jurors agreed that Disney’s Buena Vista Television and ABC breached an agreement that entitled Celador to 50 percent of the profits from the show, which first aired in the U.S. in 1999 and helped lift the network to first place from third in audience ratings.
“We believe this verdict is fundamentally wrong and will aggressively seek to have it reversed,” Disney said in an e-mailed statement.
Closely held Celador sued Disney in 2004, claiming Buena Vista and ABC “through a complex web of self-dealing transactions” allowed ABC to keep the advertising revenue and pay Buena Vista only a licensing fee equal to the cost of producing the show. That kept Buena Vista from earning a profit from “Millionaire” that it would have had to share, Celador said.
Disney, based in Burbank, California, argued that the creators, who received a flat producers’ fee per episode, knew that the network run of “Millionaire” wouldn’t generate a profit. There wasn’t anything unusual or secret about the way Buena Vista and ABC, which took all the financial risks, divided the rights, said Disney lawyer Martin Katz during the trial.
The case is Celador International Ltd. v. Walt Disney Co. 04-03541, U.S. District Court, Central District of California (Riverside.)"
<sarcasm>Ya' know I'm shocked that Disney would engage in creative accounting to keep from paying out money. </sarcasm>
Maybe, if I'm lucky this will make Disney drop WWTBAM at Studios and start running Fantasmic more often? Yeah, I know I'm dreamin'.
;)
"Disney Loses ‘Who Wants to Be a Millionaire’ Trial (Update1)
July 07, 2010, 3:02 PM EDT
By Edvard Pettersson and Tori Richards
July 7 (Bloomberg) -- Walt Disney Co. was found liable for not paying the U.K. creators of “Who Wants to Be a Millionaire” their share of profits from the quiz show broadcast on Disney’s ABC network.
A jury in Riverside, California, today awarded $269.4 million in damages to Celador International Ltd. The jurors agreed that Disney’s Buena Vista Television and ABC breached an agreement that entitled Celador to 50 percent of the profits from the show, which first aired in the U.S. in 1999 and helped lift the network to first place from third in audience ratings.
“We believe this verdict is fundamentally wrong and will aggressively seek to have it reversed,” Disney said in an e-mailed statement.
Closely held Celador sued Disney in 2004, claiming Buena Vista and ABC “through a complex web of self-dealing transactions” allowed ABC to keep the advertising revenue and pay Buena Vista only a licensing fee equal to the cost of producing the show. That kept Buena Vista from earning a profit from “Millionaire” that it would have had to share, Celador said.
Disney, based in Burbank, California, argued that the creators, who received a flat producers’ fee per episode, knew that the network run of “Millionaire” wouldn’t generate a profit. There wasn’t anything unusual or secret about the way Buena Vista and ABC, which took all the financial risks, divided the rights, said Disney lawyer Martin Katz during the trial.
The case is Celador International Ltd. v. Walt Disney Co. 04-03541, U.S. District Court, Central District of California (Riverside.)"
<sarcasm>Ya' know I'm shocked that Disney would engage in creative accounting to keep from paying out money. </sarcasm>
Maybe, if I'm lucky this will make Disney drop WWTBAM at Studios and start running Fantasmic more often? Yeah, I know I'm dreamin'.
;)