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Antitrust Lawsuit Against Disney Will Go to Trial

Antitrust Lawsuit Against Disney Will Go to Trial

Disney’s legal teams are fairly busy these days, and now have to grapple with another antitrust case centering on carriage fees for ESPN.

David Satin
David Satin has been a dedicated News Writer at The Streamable since 2022, covering a wide range of stories in the entertainment and streaming industries. With years of experience writing online, David previously worked as a list writer for Screen Rant, where he gained recognition for his extensive coverage of sci-fi and fantasy genres. His ability to break and analyze major stories has made him a trusted voice in the streaming world. Over the course of his career, Satin has become an integral part of The Streamable team, contributing to some of the most impactful stories in the industry.
Read full bio ›
David Satin
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Known for breaking major streaming stories, he’s covered everything from Netflix policy shifts to Peacock’s ad-tier changes. A sci-fi fan and Toshiba Fire TV user, he brings sharp analysis and a love for the genre to his reporting.
Known for breaking major streaming stories, he’s covered everything from Netflix policy shifts to Peacock’s ad-tier changes. A sci-fi fan and Toshiba Fire TV user, he brings sharp analysis and a love for the genre to his reporting.
Another antitrust suit against Disney is now moving forward, and has been ordered to trial.

Disney’s lawyers are getting to know the ins and outs of the Sherman Act fairly intimately these days. The 1890 law which seeks to curtail antitrust activities is being invoked in a second case against the entertainment giant, which according to The Hollywood Reporter is now headed to trial. The suit was first filed by YouTube TV subscribers in 2022, and alleges that Disney’s practices in requiring ESPN to be carried in base live TV streaming packages were anticompetitive, and when coupled with its ownership of Hulu + Live TV those practices caused prices to rise across the virtual multi-channel video programming distribution (vMVPD) world.

Key Details:

  • The lawsuit seeks to represent around 5 million YouTube TV customers.
  • Plaintiffs have been barred from seeking damages on federal antitrust charges.
  • Disney has long forced cable channel distributors to put ESPN in their lowest-priced plans, but its ownership of Hulu + Live TV may have allowed for unfair manipulation.

Disney has tried multiple times to get the lawsuit dismissed, arguing that its practices may have been harmful to other live TV streaming owners, but not to consumers. That position didn’t fly with Judge Edward Davila, however, and now the case is headed to trial.

The crux of the case is Disney’s position both as a supplier of content, and as a distributor. Specifically, the suit alleges that when it took control of Hulu + Live TV, Disney was able to force competing live TV streamers to pay so much to carry ESPN that they could no longer undercut Hulu + Live TV on price. Disney first negotiated a new carriage deal for ESPN with AT&T/DIRECTV Now (now called DIRECTV STREAM which forced the price of that service to rise by $15 per month, then used “most-favored nation” clauses to ensure the price negotiated with DIRECTV became the industry-wide floor for the channel.

In better news for Disney, the judge has ruled that because YouTube TV subscribers weren’t directly harmed by this practice, but rather bought a product from a party that did receive direct harm, they cannot pursue monetary damages. But when the case was first filed, plaintiffs were more interested in putting an end to the practice of Disney forcing distributors to put ESPN in their least-expensive plans.

Disney’s heavy-handed tactic of pushing cable companies to put ESPN in their lowest-priced packages has been standard operating procedure for decades, and has helped the channel become one of the most popular pay-TV networks of all. But until it took control of Hulu + Live TV in 2019, it never had control over a distributor that would potentially allow it to manipulate prices market-wide to its own benefit.

What Other Cases Are Disney Contending With?

Disney also faces an antitrust case brought by Fubo against the Venu Sports joint venture.

Disney is also facing a good deal of scrutiny for its role in the new Venu Sports streaming joint venture with Fox and Warner Bros. Discovery. The live TV streamer Fubo has filed an antitrust suit against the three companies, arguing that the service will restrain trade and be a hugely disruptive influence for all cable channel distributors.

Venu also faces scrutiny from congressional leaders who are concerned that it could be harmful to the pay-TV industry. Congressmen Jerry Nadler (D-NY) and Joaquin Castro (D-TX) have now sent two letters to the companies responsible for Venu asking for more details about the service, as the answers supplied to them after the delivery of the first letter were found to be unsatisfactory.

A huge, multinational corporation like Disney finds itself in court relatively often for one reason or another, so the amount of litigation the company is undergoing at the moment is hardly unprecedented. But both antitrust cases the company is facing could have lasting implications on the cable distribution marketplace, which is already feeling the pressure from all sides as viewers continue to cut the cord.

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Hulu Live TV is a live TV streaming service with more than 70 channels for $89.99 per month. Hulu + Live TV base plan includes local channels 32 of the top 35 cable channels, and regional sports networks (RSNs). Subscribers get free access to Disney+ and ESPN Select at no extra charge.

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Where it really separates itself is value. Your subscription doesn’t just cover live TV — it also includes full access to Hulu’s on-demand library, plus bundled subscriptions to Disney+ and ESPN Select content at no extra cost. That means you’re getting everything from next-day network TV episodes and Hulu Originals, to Marvel, Star Wars, and live sports content all in one place without juggling multiple bills.

For sports fans, Hulu + Live TV also includes regional sports networks (RSNs) in select areas, a feature many competing services have dropped. That can be a big deal if you’re trying to follow local MLB, NBA, or NHL teams.

The DVR experience is another strong point. Subscribers get unlimited cloud DVR storage and the ability to fast-forward through commercials on recorded content — a feature that used to cost extra but is now standard. It’s designed to feel closer to a traditional cable DVR, just without the box.

If you want to customize further, several add-ons are available. You can upgrade to premium channels like HBO, Showtime, or Starz, add an unlimited streams option for households with lots of viewers, or go ad-free on Hulu’s on-demand content (live TV will still include ads).

Overall, Hulu + Live TV is less about being the cheapest option and more about being the most comprehensive. It’s built for people who want live TV, on-demand shows, and bundled streaming services all under one roof — without having to piece everything together themselves.

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David Satin
David Satin has been a dedicated News Writer at The Streamable since 2022, covering a wide range of stories in the entertainment and streaming industries. With years of experience writing online, David previously worked as a list writer for Screen Rant, where he gained recognition for his extensive coverage of sci-fi and fantasy genres. His ability to break and analyze major stories has made him a trusted voice in the streaming world. Over the course of his career, Satin has become an integral part of The Streamable team, contributing to some of the most impactful stories in the industry.
Read full bio ›
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