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Sky has accused Warner Bros Discovery of repeatedly violating an settlement that gave it the fitting to co-produce exhibits alongside the Max streaming service — together with a brand new Harry Potter sequence that’s anticipated to debut in 2026.
In a lawsuit filed in New York on Friday, Sky mentioned “the lack of the chance to associate within the funding and manufacturing of the wholly distinctive and irreplaceable Harry Potter sequence can’t be fully or adequately quantified”.
However the Comcast-owned media group estimated the misplaced income would attain lots of of tens of millions of {dollars} “on the very least”, noting within the lawsuit that the worth of the Harry Potter model has been “estimated to be value at the least $25bn”.
Sky’s co-production deal dates again to 2019, when the Warner Bros studio was owned by AT&T. The confidential settlement required Warner to supply Sky the prospect to co-fund and co-produce authentic content material from HBO Max — the Warner-owned streaming service since rebranded as Max — yearly, in keeping with the lawsuit. Warner was subsequently spun off from AT&T and merged with Discovery to kind WBD.
The dispute comes forward of negotiations over the way forward for HBO programming on Sky within the UK, with WBD already speaking to rival streaming and TV providers about licensing its content material as soon as an exclusivity deal ends firstly of 2026.
WBD will present HBO programmes reminiscent of Home of Dragons, Succession and White Lotus on its Max streaming service within the UK beginning in 2026. Sky has solely proven these hit sequence — that are an important a part of its bundle of leisure and sports activities for subscribers — beneath a deal struck in 2019, the yr after Comcast acquired Sky for about £30bn.
Sky chief govt Dana Sturdy has mentioned the group would strike a deal for HBO content material on Sky platforms, which may embody the broadcaster carrying Max as a channel. Nevertheless, it’s unlikely to be on the identical unique phrases as Sky has benefited from.
Sky mentioned it had filed the lawsuit to “implement our rights to associate within the manufacturing and distribution of extremely precious content material”.
WBD didn’t reply to a request for remark.
The US firm introduced plans for a brand new Harry Potter sequence in April 2023, with writer JK Rowling appearing as govt producer. The creator of the Harry Potter tales mentioned on the time the sequence can be “a devoted and genuine adaptation of the books”.
Casting for the sequence started earlier this month — a truth Sky famous in its go well with, calling it “the newest demonstration of its complete disregard for Sky’s rights”, noting that manufacturing may begin subsequent April.
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