Disney Agrees to $50 Million Settlement in Streaming Package Class Action Lawsuit
The Walt Disney Company has agreed to pay $50 million to settle a class action lawsuit with YouTube TV and DirecTV Stream subscribers.
The lawsuit, initially filed in 2023, alleged that numerous television subscription prices were artificially inflated by Disney’s insistence that ESPN be included in any package.
Disney, the suit alleged, was essentially setting a price floor for the TV streaming market.
Photo: The Walt Disney Company
“Many consumers would prefer a base package that does not include ESPN and costs meaningfully less,” the plaintiffs’ lawyers said.
Disney’s Defense
For their part, Disney initially called the lawsuit meritless, arguing that it misconstrued “basic antitrust and economic concepts.”
After Disney failed to get the lawsuit tossed in 2023, the legal proceedings have dragged on.
Now, however, a settlement has been reached.
The Settlement
According to a report from Top Class Actions, Disney has agreed to establish a $50 million nonreversionary fund to “compensate class members who allegedly paid higher subscription prices as a result of Disney’s conduct.”
Walt Disney Company
This pool includes individuals who purchased YouTube TV or DirecTV Stream after April 1, 2019.
In addition to the $50 million payment, the settlement includes injunctive provisions that will address the alleged anticompetitive practices.
Photo: Also DirecTV
Under these provisions, Disney agrees to consider carriage deals that include subscription packages with fewer channels, and perhaps even without ESPN.
The injunction would last for three years following the court’s final approval of the settlement guidelines.
As always, be sure to check back with MickeyBlog. We will continue to update you on all the news coming out of The Walt Disney Company.
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