Disney Agrees to Pay $50 Million Class Action Settlement Over Subscription Packages
Disney will pay $50 million to settle a class action lawsuit alleging inflated streaming costs due to ESPN inclusion requirements.Summary
The Walt Disney Company has reached a $50 million settlement in a class action lawsuit brought by YouTube TV and DirecTV subscribers. The lawsuit, filed in 2023, accused Disney of inflating streaming costs by mandating that streaming platforms include ESPN in their bundles. Plaintiffs argued that these “carriage agreements” were anti-competitive and artificially raised subscription prices. The settlement covers customers who subscribed to YouTube TV or DirecTV between April 1, 2019, and the date of preliminary approval.
As part of the agreement, Disney will also consider future subscription package proposals that exclude ESPN, offering more flexibility to streaming providers. A previous class of FuboTV subscribers was separated from the lawsuit.
The settlement still requires court approval before it can be finalized and payouts distributed to eligible subscribers. This case highlights the ongoing tensions between content providers and streaming services regarding the cost and composition of streaming bundles.
(Source：wdwnt.com)