Disney Facing Antitrust Lawsuits Over Rising Streaming Prices
The Walt Disney Company is facing a new antitrust lawsuit.
According to The Hollywood Reporter, YouTube TV subscribers take issue with Disney’s ownership of Hulu and ESPN, which they say has allowed the company to drive up prices across the market.
The lawsuit involves YouTube TV subscribers, who filed the suit Friday in California federal court, against Disney. They point to business dealings that effectively grant the company the ability to “set a price floor” for the market and push up prices across the industry by raising the prices of its own offerings.
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“Since Disney acquired operational control over Hulu in May 2019, prices across the [streaming live pay television] Market, including for YouTube TV, have doubled,” the filing reads. “This dramatic, marketwide price inflation has been led by Disney’s own price hikes for Hulu + Live TV.”
The lawsuit also includes the contractual requirement that ESPN be included as part of any basic cable package. The nuts and bolts is that if Disney raises the price for Hulu with Live TV, competitors have to raise prices as well. YouTube TV subscribers claim that the dealings with Disney have caused an increase in cost of the base package from $35 to $65. The lawsuit represents around five million YouTube TV subscribers.
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