Disney agrees to $50 million settlement with streaming customers
Disney agrees to $50 million settlement with streaming customers
The settlement ends a lawsuit brought by DIRECTV and YouTube TV customers over Disney’s ability to control market prices.
DIRECTV and YouTube TV subscribers may be in for a little bonus in their bank accounts in the coming months. Disney has officially agreed to pay $50 million to a group of DIRECTV and YouTube TV customers who sued the House of Mouse, alleging that its bundling practices with ESPN, combined with its ownership of Hulu + Live TV, led to higher live TV streaming prices market-wide.
Key Details:
- We’ll pay: Disney has agreed to a $50 million settlement with DIRECTV and YouTube TV subscribers.
- Eligibility requirements: Anyone who subscribed to YouTube TV or DIRECTV between April 2019 and March 2026 is eligible for a settlement payment.
- Long process: The suit was first filed in 2022 and ordered to trial in 2024.
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The class-action lawsuit against Disney was first brought by four YouTube TV subscribers in 2022. The suit alleged that the company’s ownership of both ESPN and Hulu + Live TV allowed Disney to wield outsized pricing power in the market by simply inflating the cost of its own products and forcing competitors to keep up.
The plaintiffs also said that Disney’s insistence that ESPN be included in a company’s cheapest package prevented services from offering lower-cost options. All along, Disney has maintained that it has done nothing wrong, even after its decision to settle the case.
Anyone who subscribed to either DIRECTV or YouTube TV between April 1, 2019, and March 31, 2026, is eligible to claim part of the settlement. All claims must be submitted by Sept. 8, and anyone who wishes to submit a claim can learn more here. Payments are expected to be distributed in January.
Disney tried more than once to get the lawsuit dismissed more than once as it moved through the courts, but it was ordered to trial nevertheless in summer 2024. By settling, Disney has avoided prolonging litigation even further.
While viewers may not have gotten a direct win that forces Disney to change its bundling practices with ESPN, the company has already shifted its position somewhat in that regard. After a protracted carriage dispute with DIRECTV in 2024, Disney finally allowed distributors to include ESPN and other channels it owns in smaller-sized packages that offer viewers additional choice.
DIRECTV
DIRECTV is one of The Streamable’s top choices for the best live TV streaming service overall in 2026, especially for users who want the most channels or want to watch the most live sports. With an unbeatable lineup of local, news, sports, and entertainment channels, three main signature packages, an unlimited DVR, and 20 simultaneous streams at home, DIRECTV remains a premier choice for any cord-cutter.
