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'Millionaire' Producer Sues Disney

Friday, May 21, 2004

08:18 AM PT

The production company that makes "Who Wants to Be a Millionaire" is suing Disney, claiming the media giant shortchanged it on profits from the show.

In the suit, filed Thursday (May 20) in Los Angeles, Paul Smith, head of "Millionaire" producer Celador, claims Disney subsidiary Buena Vista Television gave ABC -- also part of Disney -- a sweetheart deal on the game show's license fee. As a result, the show was sold "at prices well below the fair market value."

Smith and Celador also claim that Disney inflated production costs for the show, eating into Celador's profits, according to several news reports.

Disney isn't commenting on the suit.

"Millionaire," hosted by Regis Philbin, was an instant success for ABC, propelling the network to the top of the ratings in the 1999-2000 season. ABC tried to have too much of a good thing, however, and overexposure led to a quick and steep decline. "Super Millionaire," a revamped, higher-stakes version of the game, has enjoyed decent ratings during short runs in February and this month.

Celador's suit is one of several filed in recent years that accuses media conglomerates of "self-dealing" to keep the cost of programming artificially low. The creators of "Will & Grace" sued NBC last year over a similar issue, saying that NBC Studios, which produces the show, didn't ask for its full value in renewal talks with the network.