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Disney Agrees to $50 Million Settlement in Streaming Subscription Lawsuit
The Walt Disney Company has agreed to pay $50 million to settle a class action lawsuit involving streaming subscription packages offered through services like YouTube TV and DirecTV Stream. The lawsuit, originally filed in 2023, accused Disney of inflating streaming prices by requiring platforms to bundle ESPN with their channel offerings.
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According to the lawsuit, Disney’s carriage agreements forced streaming providers to include ESPN in their base channel packages, even if customers may not have wanted sports programming. Plaintiffs argued this practice drove up subscription costs and limited consumer choice, making the pricing structure anti-competitive.
The proposed settlement would apply to customers who subscribed to YouTube TV or DirecTV’s streaming live pay TV services between April 1, 2019, and the date the settlement receives preliminary approval. If finalized, the agreement would establish a $50 million settlement fund for affected subscribers.
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In addition to the financial payout, the settlement requires Disney to consider proposals for streaming packages that could include fewer Disney-owned channels. This means future bundles may potentially exclude ESPN or other Disney networks depending on negotiations with streaming providers.
An earlier version of the lawsuit also included customers from FuboTV, though that group was later separated from the case.
The proposed settlement still needs approval from the court before it becomes final.
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