Exclusive: ‘South Park’ Creators Take a Stand Against Streaming Deal Interference with Legal Action

As Paramount’s lucrative licensing deal for South Park nears its end, tensions are rising over contract negotiations. Jeff Shell, set to become president of Paramount if its merger with Skydance goes through, faces accusations from South Park creators Trey Parker and Matt Stone. Their attorney claims Shell meddled in talks with potential buyers.

A letter from Park County, the company run by Parker and Stone, highlights these concerns. They accuse Shell of urging Netflix and Warner Bros. Discovery to change their offers in a way that would favor Paramount. For example, he allegedly pushed for an exclusive 12-month window for new episodes on Paramount+ and suggested shortening the contract from ten years to five. Such moves could jeopardize the value of the deal for Parker and Stone.

Park County demands Shell and the Skydance team stop this interference. “If these activities continue, we will have no choice but to protect our rights,” the letter states.

In response, a Skydance spokesperson noted that the agreement allows them to approve major contracts. This situation unfolds against the backdrop of a joint venture between Parker and Stone and Paramount called South Park Digital Studios, which holds the streaming rights to the show. There are still two years left in Paramount’s $900 million overall deal, and negotiations for its renewal are underway.

The complex ownership structure raises concerns about conflicts of interest, making licensing negotiations tricky. The planned merger between Paramount and Skydance also complicates matters. Under federal antitrust laws, Skydance cannot take control until the merger officially closes.

Park County’s legal team argues that Shell’s actions are unjust, especially since he allegedly interfered before being granted authority from Paramount. “You did this behind Park County’s back,” General Counsel Afshin Beyzaee stated, emphasizing that this self-dealing wouldn’t have been allowed if it were done by Paramount itself.

South Park Digital Studios operates under a five-member board, which includes Paramount’s Comedy Partners. However, the board has limited rights. Park County insists Shell overstepped by dictating changes that could lower the value of proposals from potential buyers.

This dispute is tied to a deal from 2007, when Parker and Stone struck a profitable agreement with Viacom, the then-owner of Comedy Central. Back then, streaming was still new—Netflix had just begun streaming, and the debate over copyright was heating up, as Viacom pursued legal action against YouTube.

The 2007 deal granted Parker and Stone’s company a 50% stake in digital revenue indefinitely. As streaming has exploded into a trillion-dollar industry, this agreement has only grown in value. For instance, HBO Max’s 2019 deal for South Park reruns was worth $550 million, with half going directly to Parker and Stone. With over 300 episodes in their library, the show’s future deals promise a steady revenue stream.

This situation raises important questions about the business of streaming. As content becomes a cornerstone of entertainment, creators are navigating complex relationships with studios and platforms. The outcome of these negotiations could significantly shape the landscape for shows like South Park in the years to come.

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