Judge Orders Disney To Pay $50 Million in Streaming Lawsuit

The Walt Disney Company recently settled a class action lawsuit that accused the company of inflating streaming prices through its process of channel building.

©Disney | Walt Disney Company Headquarters

The settlement was approved by a judge in March and resolves the claims brought by YouTube TV and DirecTV Stream subscribers who alleged Disney violated antitrust laws by forcing distributors to carry bundles of networks as a condition for licensing content.

Plaintiffs from five different states brought the class action suit against Disney on behalf of all DirecTV Stream subscribers since April 1st, 2019. YouTube TV subscribers joined the case in October 2023. As part of the settlement, Disney has been ordered to pay $50 — DirecTV and YouTube TV subscribers can make claims for a piece of the settlement.

©DirecTV

The Plaintiffs alleged that Disney’s ownership of ESPN has given the Company the power to “set a price floor” when it comes to TV streaming. Specifically, they allege that they’re paying MORE for their subscriptions than they otherwise would have to if ESPN weren’t part of the base package.

©ESPN

Disney’s lawyers asked U.S. District Judge Edward Davila to dismiss the pair of consumer antitrust cases back in October 2023, but the judge denied the motion.

Plaintiffs’ attorney Yvar Bathaee said that as many as 11 to 17 million people could claim part of the settlement, which includes up to $15.11 million in attorney fees and costs. “We think this meets all the requirements of approval,” said Bathaee.

©YouTube

Judge Davila agreed and said the settlement terms were fair, adequate, and reasonable, but had questions about the process for subscribers to make claims. Bathaee said that oftentimes, consumers think the “information cost” is too high.

©YouTube

In addition to the settlement approval, Davila also heard arguments on whether two Fubo subscribers can be allowed to continue their case against Disney or be compelled to arbitration.

Disney attorney Daniel Petrocelli said that Fubo required its subscribers to agree to its terms when signing up for livestream TV. The terms included arbitration of future lawsuits, but the subscribers argued that they did not enter into a contract with Disney when they signed up for Fubo, as Disney later acquired Fubo.

©Fubo

Davila said the motion would be under submission and that he would get an order out shortly; however, that has not yet occurred.

We’ll be on the lookout for more Disney lawsuit updates you need to know about and beyond. In the meantime, make sure you stay tuned to the Disney Food Blog for the latest Disney news and more.

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