Disney agrees to $50M settlement over claims it made live TV streaming expensive
Disney has agreed to a $50 million settlement to resolve a class-action lawsuit alleging that its practices raised the cost of live TV streaming services. The settlement still requires final court approval in January.
Disney has reached a $50 million settlement agreement in response to allegations that it made live television streaming more expensive. The lawsuit, filed as a class action, sought certification and a jury trial, but the parties reached an agreement in March. The court preliminarily approved the settlement later that month, with a final approval hearing scheduled for January 14.
Eligible customers include those who subscribed to YouTube TV, DirecTV Stream, DirecTV Now, or AT&T TV Now between April 1, 2019, and March 31, 2026. Under the terms, Disney admits no wrongdoing and has agreed to “consider” offering distributors—with whom it negotiates—the option to provide fewer Disney-owned channels, including ESPN, for three years after final approval. However, the agreement does not require Disney to offer more affordable or skinnier bundles of its channels.
Disney can easily afford the $50 million settlement, having reported $4.6 billion in total segment operating income in its most recent fiscal quarter. For affected streaming users who felt disadvantaged by Disney’s practices, the settlement may provide some sense of justice. Disney did not respond to a request for comment.
