AMC Networks
AMC Networks Inc. is an American entertainment company headquartered in 11 Penn Plaza, New York, that owns and operates the cable channels AMC (its eponymous brand), IFC, WE tv, BBC America (through a joint venture with BBC Studios), and SundanceTV; the art house movie theater IFC Center in New York City; the independent film company IFC Films; and premium streaming services Sundance Now and Shudder. In addition, the company operates AMC Networks International, its global division.
The Walking Dead (TV series)
In December 2013, Darabont and his agents from Creative Artists Agency (CAA) filed a lawsuit against AMC in a New York court, citing breach of contract. A central part of Darabont's lawsuit accuses AMC of denying him and the CAA the promised profits from the success of the series, based on how AMC had used vertical integration in producing and distributing "The Walking Dead". As stated in Darabont's filing, he had initially entered into a contract with AMC to have a third-party studio produce the show, from which he would have obtained 12.5% of that entity's profits, after standard deductions. AMC wanted to produce the show in-house, and for the first season, Darabont's lawyers had been assured that Darabont would be protected from self-dealing fees by having AMC commit to imputed license fees equivalent to those of other independent studios, with Darabont earning profit from that. Darabont's suit contends that when the show's popularity took off, AMC presented a license fee deal to Darabont around February 2011 that used "an unconscionably low license fee formula" such that AMC could report the show running at a loss and ensuring that Darabont would never see any profit from the show; as an example, the suit references statements in 2012, following the second season, that AMC claimed the show was running at a $49 million deficit, despite being one of the most popular shows in broadcast. Darabont's suit contends he was fired just at the start of the second season so that AMC would avoid having to pay him.