No magic wand is going to make the latest legal fight Warner Bros Discovery and David Zaslav find themselves in go away, even if Harry Potter is a part of the corporate skirmish.Up against the NBA and Amazon over basketball rights, and losing traction in the court-paused launch of Venu sports streamer, Warner Bros Discovery today finds itself blasted by a lawsuit from Comcast-owned Sky UK and others over a TV deal that looks to have withered on the contractual vine.“Warner has repeatedly failed to offer Sky the annually required minimum number of contractually qualifying series for its consideration,” says the hard hitting complaint filed Friday in federal court in New York of a 2019 deal the parties inked. “Specifically, Warner was obligated to present Sky with at least four shows per year across 2021, 2022, and 2023 but undisputedly fell far short of that mark, in certain years offering barely a single qualifying series while also withholding critical, contractually required information necessary for Sky to evaluate any potential options that it did receive.”On the surface, the jury seeking-filing from Sky accuses Warner Bros Discovery of trying to pull off a very clumsy sleight of hand trick.Pretty straightforward, right?However, pouring vinegar further into the corporate wine, the Sky complaint also comes as the longtime output deals for HBO in the UK, Italy and Germany are due to expire in 2025, paving the way for struggling streamer Max to launch in those key territories. It is those very markets that European-focused Sky believes it is being deprived of enjoying the 20-year-long financial fruits from Warner Bros Discovery TV series and the disintegration of the now five-year-old deal.On top of that, the new lawsuit potentially puts the kibosh on the charm offensive efforts that Warner Bros Discovery CEO Zaslav has been on for the past several years with Potter author J.K. Rowling, even as Zas was one of the few Tinseltown bigwigs to stick with the writer through her controversial and sometimes out-and-out confusing opinions on trans individuals. Certainly, unless this is settled very soon, today’s action will at least slow down the debut of the “10 consecutive years” planned Harry Potter TV series that is set to debut on HBO in 2026.Having been essentially blown off by Warner Bros Discovery last year when the official announcement of the long anticipated Potter series was made, Sky is naming the Voldemort in this dispute now.“This misconduct has deprived Sky of its bargained-for opportunity to co-fund, co-produce, and subsequently exploit exclusively in UK and European territories all manner of top-end Warner content,” the 36-page complaint from the Euro Pay TV giant states. “If all that were not enough, Warner has now even brazenly denied Sky its right to partner on Warner’s highly valuable decade-long, tentpole television series adapting J.K. Rowling’s iconic Harry Potter novels, set to premiere in 2026 or 2027,” it adds. “Instead, Warner has largely disregarded the parties’ agreement and sought to keep the Harry Potter content for itself so that Warner can use it as the cornerstone of the launch of its Max streaming service in Europe.”For Warner Bros Discovery, the reaction today was to cast aspersions on the very premise of the Sky suit itself.“The HBO and Max licensing agreements expire at the end of 2025, and this lawsuit is a baseless attempt by Sky and Comcast to try and gain leverage in its negotiations for our programming beyond that date,” a Warner Bros Discovery spokesperson said in response Friday.“We know HBO-branded shows are critical to Sky, as evidenced by their desire for over a year to find a way to renew our agreements, and this lawsuit makes it clear that Sky is deeply concerned about the viability of its business were it to lose our award-winning content,” the partially John Malone-owned Warner Bros Discovery added. “Warner Bros Discovery will vigorously defend itself from this unfounded lawsuit as we move forward undeterred with plans to launch Max, including the new HBO Harry Potter series, in the UK and other European markets in 2026.”Still, in case there is any nuance to be asserted here, the opening graphs of the 2019 deal literally says: “For each calendar year from 2021 through 2025, Sky shall be presented with all qualifying HBO MAX original series (and not less than four (4) in any event) that are: (i) one hour slot length in duration per episode; (ii) intended to be multi-season; (iii) produced by WBTV or HBO MAX for premiere on HBO MAX; and (iv) which are ordered within the applicable year to a first season (each a “Series”). Sky shall select a minimum of two (2) new Series per year.”Pretty straightforward, especially for a lawyer like Zas.In its filing, Sky wants unspecified “compensatory and consequential damages” from Warner Bros Discovery, plus a court declaration that the deal with the Comcast-owned company was “breached.” To get very specific, Sky also wants: “An order requiring Defendant Warner to immediately submit the Harry Potter Series for Plaintiff Sky’s consideration in accordance with the terms of the Co-Funding Agreement.”Having said that, as is often the case, companies can fight, but they can co-exist too for their mutual benefit. As Sky, which was purchased by Philadelphia-based Comcast in 2018 for around $40 billion, made clear in a statement provided to Deadline today about the so-called Potter suit.“We continue to work constructively with Warner Brothers Discovery and have a separate agreement in place that will ensure Sky customers continue to enjoy HBO shows, including new seasons, such as House of the Dragon, The Last of Us, The White Lotus and Euphoria, along with exciting new releases such as Dune: Prophecy, and many more for years to come,” a Sky spokesperson said Friday.Worth noting that Warner Bros Discovery and Comcast are still very much in the same house when it comes to Harry Potter domestically. From Hogwarts Castle to the $8.50 Butterbeer on tap, the two companies are partners on the centerpiece The Wizarding World of Harry Potter attraction at both Universal’s LA and Orlando theme parks.Or, as Dumbledore once said and Comcast may be quoting today: “It takes a great deal of bravery to stand up to our enemies, but just as much to stand up to our friends.”Worth noting that Warner Bros Discovery shares rose 1% in light trading Friday and then dipped a fraction after hours after the news of this lawsuit.
© 2024 Deadline.