Disney Handing Out $50,000,000 To Settle Allegations of Driving Up Subscription Prices for Consumers

The Walt Disney Company has agreed to settle a class action lawsuit filed by YouTube TV and DirecTV subscribers in 2023.

The lawsuit alleges that the entertainment conglomerate inflated the cost of streaming services by requiring streaming live pay television (SLPTV) providers to carry a bundle of Disney Networks including ESPN sports channels as a condition to offer Disney programming. 

The plaintiffs argue that these arrangements prevented streaming services from offering low-cost packages that do not include ESPN channels.

“[T]he YouTube TV Plaintiffs and the DirecTV Stream Plaintiffs allege, among other things, that Disney violated federal antitrust law and various state antitrust and consumer-protection laws by engaging in various forms of conduct to fix, raise, maintain, or stabilize the prices of Streaming Live Pay Television (“SLPTV”) and that these acts caused the Settlement Classes to incur damages.”

In a settlement agreement submitted to the US District Court Northern District of California, San Jose Division on March 5th, the counsels of the plaintiffs say that while Disney continues to deny allegations of wrongdoing, it will enter into a settlement agreement to put to rest the controversy and avoid the complexities of litigation.

The parties agreed that Disney will pay the settlement amount of $50 million, which will cover the payment of any fee and expense award as well as other costs related to the implementation of the agreement.

“Under no circumstances will Disney be required to pay more or less than the Settlement Amount pursuant to this Settlement Agreement and the Settlement set forth herein.”

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