Disney to Pay $50 Million to Settle Antitrust Lawsuit Over Streaming TV Prices

The Walt Disney Company reportedly agreed to pay $50 million to settle a class-action antitrust lawsuit alleging that the media giant used its massive market leverage to artificially inflate the prices of live television streaming services. The settlement is set to benefit millions of consumers who held subscriptions to YouTube TV, DirecTV Stream, DirecTV Now, or AT&T TV Now at any point between April 1, 2019, and March 31, 2026. As ArsTechnica reports, a group of YouTube TV subscribers filed a class action complaint in November 2022. Four YouTube TV subscribers filed a complaint in the U.S. District Court for the Northern District of California. The plaintiffs accused Disney of entering into anticompetitive carriage agreements with internet-based live TV distributors, a sector known in the industry as the streaming live pay TV market. According to the lawsuit, Disney wielded absolute pricing power over the entire market by forcing these services to include its premium sports network, ESPN, in their cheapest, standard base packages. The filing argued that by forcing mandatory bundling and simultaneously raising prices for its own live streaming service, Hulu + Live TV, Disney effectively established an artificial price floor that caused subscription costs to skyrocket across the entire industry. The complaint filing reads in part: … these carriage agreement mandates—which now cover all of Disney’s leading competitors in the SLPTV Market—allow Disney to use ESPN and Hulu to set a price floor in the SLPTV Market and to inflate prices marketwide by raising the prices of its own products. And this is exactly what Disney has done in the past three years, since it took operational control of Hulu.

To illustrate the financial impact on consumers, the complaint pointed out that YouTube TV’s base package jumped drastically from $35 to $65 after adding Disney-owned channels. The plaintiffs also noted that during a tense 2021 carriage dispute, YouTube TV openly stated that its monthly base plan would be $15 cheaper if it were allowed to drop Disney’s networks entirely. In fact, in a tweet at the time, YouTube TV hinted that networks requiring carriage of a full portfolio of channels. The tweet read, "Most networks require that we include their full portfolio of channels to subscribers, which increases the overall price of the service. We’re committed to continuing to innovate our service and offer flexible options to members in the future." While the lawsuit originally sought class-action certification and a jury trial, the opposing parties ultimately resolved the matter outside of the courtroom. The two sides quietly reached a settlement agreement in March, which received preliminary approval from a federal judge later that month. A final approval hearing has been officially scheduled for January 14. Under the terms of the final agreement, Disney will pay out the $50 million sum but admits to absolutely no wrongdoing. Additionally, the entertainment giant has agreed to consider offering distributors the option to purchase smaller, skinnier channel bundles that exclude ESPN during negotiations over the next three years.

To participate in the settlement, eligibility is divided by geography. Customers are classified as belonging to "Repealer Jurisdictions," which encompass 40 states including Alabama, New York, California, and Florida. All remaining states and U.S. territories are designated as "Non-Repealer Jurisdictions." The final cash payout amount for each eligible person will depend on the total length of their YouTube TV or DirecTV Stream subscription, as well as the overall number of valid claims filed. To receive compensation, eligible subscribers must submit a valid claim form through the Online TV Settlement website by September 8, 2026. Alternatively, anyone wishing to exclude themselves from the settlement must submit a written request by mail by that same September 8, 2026 deadline. Exclusion requests must be sent to the settlement administrator at Biddle v. Disney, Settlement Administrator, P.O. Box 4720, Portland, OR 97208-4720.