Disney agreed to $50M settlement over claims it made live-TV streaming expensive

The Walt Disney Company has reached a settlement agreement worth $50 million to resolve allegations from subscribers of YouTube TV and DirecTV regarding inflated live TV streaming prices. This lawsuit, initiated in November 2022, accused Disney of coercing these services into raising their costs by enforcing unfair pricing practices. A group of four YouTube TV users filed a class action lawsuit in the US District Court for the Northern District of California, asserting that Disney engaged in "anticompetitive agreements" with streaming providers. The plaintiffs argued that Disney's requirements to include ESPN, a channel owned by the company, in basic service packages led to higher prices across the industry. The complaint highlighted that Disney’s actions had a significant impact on the streaming live pay TV (SLPTV) market. It was alleged that Disney utilized its control over ESPN and Hulu, its own streaming service, to establish a price floor, consequently inflating costs marketwide. Evidence presented in the lawsuit showed that YouTube TV's base subscription skyrocketed from $35 to $65 following the inclusion of Disney-owned channels. Furthermore, during a dispute between YouTube TV and Disney in 2021, it was revealed that the base package would have been $15 cheaper without Disney's channels included.