Disney to Pay $50 Million to Settle Live-TV Streaming Antitrust Case
The Walt Disney Company has reached a $50 million settlement to resolve a class-action lawsuit alleging the media giant colluded with live-TV streaming providers to drive up subscription prices. The agreement addresses claims that Disney used its market power to inflate costs for users of services such as YouTube TV and DirecTV Stream.
The lawsuit, filed in 2022, contended that Disney violated federal and state antitrust laws by forcing providers to include ESPN in their basic cable packages. Plaintiffs argued that this requirement created an artificial price floor, effectively doubling the cost of these streaming services to prevent competitors from undercutting Disney's own Hulu + Live TV service.
According to court documents, the litigation alleged that Disney utilized "most-favored-nation" clauses in its carriage agreements. These clauses allegedly ensured that price increases driven by ESPN rates would not be undercut by other providers, further stabilizing high costs across the live streaming pay TV market.
Under the terms of the settlement, Disney will provide monetary compensation to class members who subscribed to YouTube TV or DirecTV Stream between April 1, 2019, and March 31, 2026. The specific amount each individual receives will be determined by their location and the duration of their subscription.
Beyond the financial payout, the deal includes injunctive relief. For a period of three years, Disney must consider proposals from streaming providers that would allow them to offer monthly subscriptions that do not include every Disney network, specifically allowing for the exclusion of pricier channels like ESPN.
Judge Edward J. Davila of the U.S. District Court for the Northern District of California approved the settlement on April 14, 2026. While the settlement resolves the claims, Disney has denied all allegations of wrongdoing and has not admitted to any liability or breach of law.
