Disney agreed to $50M settlement over claims it made live-TV streaming expensive
Summary
Disney has agreed to pay $50 million to settle a lawsuit claiming it forced live TV streaming services to raise prices by requiring them to include Disney channels like ESPN. The settlement affects subscribers of YouTube TV, DirecTV Stream, and similar services who subscribed between April 2019 and March 2026.Key Facts
- Four YouTube TV subscribers filed a class action lawsuit against Disney in November 2022.
- The lawsuit accused Disney of making live TV streaming more expensive by requiring providers to include ESPN and other Disney channels.
- Disney also owns Hulu + Live TV, and its pricing influenced the whole streaming live pay TV market.
- YouTube TV's base price rose from $35 to $65 after adding Disney-owned channels.
- Disney agreed to pay $50 million without admitting any wrongdoing.
- The settlement covers customers of YouTube TV, DirecTV Stream, DirecTV Now, and AT&T TV Now from April 2019 to March 2026.
- Disney agreed to consider letting distributors offer fewer Disney channels, including ESPN, for three years after the final settlement approval.
- The final court hearing to approve the settlement is scheduled for January 14.
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