Disney Settles Antitrust Lawsuit for $50 Million Over TV Package Practices
The settlement addresses claims that Disney forced distributors to inflate subscription prices by including its sports channels.
The Walt Disney Co. has agreed to a $50 million settlement to resolve a class action lawsuit that accused the company of violating federal and state antitrust and consumer protection laws. The suit alleged that Disney compelled YouTube TV and DirecTV Stream to increase their subscription prices by requiring them to carry ESPN and other Disney-owned channels.
Plaintiffs argued that this practice made it impossible for providers to offer cheaper packages without the sports networks, leading consumers to pay "artificially inflated prices." While Disney denies any wrongdoing, the settlement covers eligible customers who subscribed to YouTube TV or DirecTV Stream between April 1, 2019, and March 31, 2026.
Eligible customers reside in various "Repealer Jurisdictions," including Alabama, New York, and California, along with 36 other states and territories. The compensation amount will depend on the duration of a subscriber's service. To receive a payout, eligible individuals must submit a claim form by September 8, 2026, via the Online TV Settlement website.
Individuals wishing to opt out of the settlement must also submit a request by mail to the settlement administrator by the same date. The settlement administrator will determine the final payout amounts after all claims are processed. A final approval hearing is scheduled for January 14, 2027, with payments expected to be distributed within 90 days of approval.
In addition to the financial settlement, Disney has agreed to changes in its distribution practices. The company will now entertain proposals from streaming distributors seeking to offer packages with fewer Disney-owned networks, including options that exclude ESPN channels. This move is expected to provide streaming services with greater flexibility in negotiating carriage agreements.
Fubo TV, also a party to the original lawsuit, has not yet reached a settlement with Disney, and its case remains ongoing. This settlement follows recent legal developments involving other major companies, such as Costco facing a suit over its rotisserie chicken labeling and Bank of America settling a class-action lawsuit concerning ATM fees.