Disney Agrees To $50 Million Settlement Over ESPN Bundling On YouTube TV And DIRECTV

The Walt Disney Company agreed to a $50 million settlement to resolve a class-action lawsuit brought by streaming consumers over Disney’s prior practice of bundling ESPN with entertainment and local broadcast channels on YouTube TV and DIRECTV.

“The Walt Disney Company has agreed to pay $50 million to subscribers of YouTube TV and DirecTV’s live TV streaming services to settle a lawsuit that claimed that Disney forced these services to raise their prices”

Ars Technica

The dispute, filed in California several years ago, alleged subscribers were wrongly overcharged because Disney insisted on bundling ESPN with local broadcast stations, entertainment networks, and kids channels like Freeform, FX and the Disney Channel.

Ars Technica

Disney denied any wrongdoing but opted to settle rather than continue the case, and the settlement does not resolve an ongoing issue involving Disney’s bundling practices with Fubo, according to a legal notice.

The settlement website says customers who purchased a YouTube TV subscription from April 1, 2019, through March 31, 2026 may be eligible to file a claim, and the same period applies to DirecTV streaming live pay TV subscriptions including DirecTV Stream, DirecTV Now, and AT&T TV Now.

The settlement divides potential payouts between “Repealer Jurisdictions” and “Non-Repealer Jurisdictions,” with the Online TV settlement website describing eligibility for customers who purchased YouTube TV or DirecTV Stream between April 1, 2019 and March 31, 2026.

Eligible individuals can file a claim by submitting a claim form online via the settlement website or mailing a claim form to “Biddle v. Disney Settlement Administrator P.O. Box 4720 Portland, OR 97208-4720,” and claim forms must be submitted or postmarked by Sept. 8, 2026.

Chic Magazine

Payments are scheduled to come after the settlement is approved by the court and becomes final, and the final approval hearing for the settlement is scheduled for Jan. 14, 2027.

TheDesk.net also states that ninety percent of the settlement will be paid to subscribers of YouTube TV or DIRECTV’s streaming services—including DIRECTV Stream and AT&T TV Now—who had an eligible plan between April 2019 and March of this year.

The lawsuit centered on allegations that Disney forced YouTube TV and DIRECTV Stream to raise subscription prices by requiring distributors to carry ESPN and other Disney-owned channels, making it impossible for providers to offer cheaper packages without the sports network.

“In the entertainment industry, it is often difficult to translate with precision the fluctuations of the coffee grounds”

Comicsblog

Ars Technica reports that four YouTube TV subscribers filed a class action complaint in the US District Court for the Northern District of California in November 2022, accusing Disney of entering “anticompetitive agreements with YouTube TV” and other companies.

The settlement also includes prospective changes requiring Disney to consider proposals from streaming distributors seeking packages with fewer Disney-owned networks, including plans that exclude ESPN channels.

While Disney agreed to the $50 million settlement for the YouTube TV and DIRECTV Stream claims, the sources say the Fubo portion of the lawsuit is ongoing, with plaintiffs in that platform “have yet to settle with Disney” over bundling practices.