Disney Settles $50 Million Streaming Lawsuit Over YouTube TV and DirecTV Stream Overcharges

Disney has agreed to a $50 million settlement in a class action lawsuit that alleged the company drove up streaming prices for YouTube TV and DirecTV Stream subscribers.

The lawsuit, originally filed in 2022, claimed Disney violated federal and state antitrust laws by requiring ESPN to be included in basic streaming TV packages — then hiking prices across the board. The complaint also alleged Disney made deals with rival streamers that allowed them to air ESPN content but blocked them from offering cheaper bundles without ESPN channels.

In other words: you were allegedly paying more for your streaming subscription because Disney made sure you couldn't get a package without ESPN, whether you wanted it or not.

Under the proposed settlement, consumers who purchased a YouTube TV or DirecTV Stream subscription at any time from April 1, 2019 through the date the court grants preliminary approval could be eligible for a cash payment.

How much could you get?

Payouts will be proportional to how long you were subscribed. 90% of the settlement fund goes to class members in "repealer" states — states that allow indirect purchaser antitrust claims — while the remaining 10% goes to members in other states. The repealer list covers most of the country, including California, New York, New Jersey, Texas, Florida, and dozens more.

There's no claims website live yet. Once the court grants preliminary approval, a deadline and claim form will be set. You'll need to provide the length of your subscription.

A settlement hearing is scheduled for March 19.

Disney has not admitted to any wrongdoing.

What about the injunctive relief?

Beyond the money, the settlement also requires Disney to consider proposals from streaming providers that would let them offer subscribers a package without ESPN channels. That's a big deal — it's essentially the practice the lawsuit was about in the first place.

Download ClassyAction to stay updated on this settlement and get notified when the claim form goes live.