YouTube TV subscribers win in lawsuit against Disney over driving up streaming costs

Disney has agreed to a $50 million settlement to resolve a class action lawsuit brought by YouTube TV subscribers. The lawsuit, filed in late 2022, accused Disney of engaging in anticompetitive practices by requiring distributors to include ESPN in base packages, which effectively set a price floor and drove up costs for live TV streaming services like YouTube TV and Hulu + Live TV.

The complaint alleged that Disney used its control over major channels to inflate marketwide prices. This legal action coincided with significant price hikes for YouTube TV, which rose from $35 to $65 following the addition of Disney-owned channels. While Disney does not admit to any wrongdoing, the settlement provides compensation to subscribers of YouTube TV, DirecTV Stream, DirecTV Now, and AT&T TV Now who were active between April 1, 2019, and March 31, 2026.

Additionally, the agreement stipulates that Disney must "consider" offering distributors the option to carry fewer channels, such as ESPN, though this is not a mandatory requirement. The settlement follows a history of public disputes between YouTube TV and Disney regarding carriage agreements and pricing.

(Source：9to5Google)