In March, the season premiere of “South Park” began by barging into typically risqué territory, with a squirm-inducing bit about the taboo of using a certain racial epithet.
To Matt Stone and Trey Parker, the creators and executive producers of “South Park,” Comedy Central’s most lucrative franchise, the clip ought to have been blazing its authorized way around the Internet, its flouting of social norms picking up ad revenue with every set of eyeballs. Instead, the clip was easy to find, but it wasn’t making any money for its rightful owners.
“If I’m overseas and have to get an episode right away,” Mr. Stone lamented, “you literally have to go to an illegal download site.”
Because of the slow entry into the digital realm of Viacom, Comedy Central’s parent, and an almost crippling deal point in Mr. Stone’s and Mr. Parker’s contract, the lewd, rude, crudely animated and mordantly funny series — one that began with a viral video before the term even existed — has barely had a presence as an avalanche of user-generated entertainment hit the Web. Meanwhile, sites like YouTube met the demand for free “South Park” clips without paying for the privilege.
Now, however, Mr. Stone and Mr. Parker and their bosses at Comedy Central, a unit of Viacom’s MTV Networks, are attempting to leapfrog to the vanguard of Hollywood’s transition into Web. In a joint venture that involves millions in up-front cash and a 50-50 split of ad revenues, the network and the two creative partners have agreed to create a hub to spread “South Park”-related material across the Net, mobile platforms, and video games.
The deal, signed Friday, begins with a three-year extension of the show and its creators’ contracts through a 15th season, in the year 2011, and gives Mr. Stone and Mr. Parker sizable raises, both in their salaries and in their guaranteed advances against back-end profits from DVDs, merchandising, syndication and international sales.
It also creates an entity called SouthParkStudios.com, to be housed in the show’s animation studio in Culver City, Calif., that is intended to be an incubator not only for new applications for characters the likes of Cartman, Kyle, Stan and Kenny, but for new comedy concepts that could one day mature into TV series of their own.
All told, people involved in the deal confirm that it is worth some $75 million to Mr. Parker and Mr. Stone over the next four years. But what is likely to draw the most attention in Hollywood is not the richness of the pact, but the network’s willingness to share its advertising revenue.
[Read On: NY Times]