YouTube TV and DirecTV subscribers can now apply for their share of a $50 million antitrust settlement involving Disney. The lawsuit, filed in November 2022, contends that Disney utilized anticompetitive tactics to establish a price floor in the television streaming subscription sector. ESPN, owned by Disney, is noted as the most costly channel for streaming services, allegedly giving the company pricing power over its competitors.
The class-action suit claims Disney’s contracts with streaming services mandate that ESPN be included in their basic bundles, thereby raising overall costs for subscribers. Preliminary approval of the settlement was granted by a judge in the U.S. District Court for the Northern District of California on March 31. Disney denies any wrongdoing but has opted for this settlement to resolve the issue.
Eligible claimants include YouTube TV subscribers who had accounts from April 1, 2019, to March 31, 2026, and individuals who purchased a DirecTV streaming subscription branded under various names. While the total payout amount per claimant is still unknown, estimates suggest that initial distributions could be below $3 each, dependent on the number of valid claims. Approximately 17 million class members may participate, with expected claims rates between 2% to 5%. Notably, payout amounts will vary by state, with most funds designated for those in states that allow indirect purchasers to sue for antitrust damages.
Eligible customers must submit their claims by September 8, 2023, either online or via mail. Payments will be distributed after final court approval, expected in January 2027, making the entire process potentially lengthy.
Why this story matters:
- The case highlights ongoing concerns regarding antitrust practices in the streaming industry.
Key takeaway:
- Subscribers may receive compensation for overpricing tied to Disney’s business practices.
Opposing viewpoint:
- Disney maintains that it did not engage in wrongdoing, opting for settlement to avoid a protracted legal battle.
