Disney To Pay Out $50 Million To Streaming Subscribers – Are You One of Them?

A years-long legal battle over streaming costs is nearing its end, and millions of subscribers could be in line for a payout from Disney.

How the Lawsuit Against Disney Started

The Walt Disney Company has agreed to a $50 million class-action settlement stemming from a 2023 lawsuit filed by YouTube TV and DirecTV Stream subscribers. The plaintiffs alleged that Disney's carriage agreements effectively forced streaming platforms to bundle ESPN into their packages, artificially driving up the cost of live TV subscriptions in a way that was “anti-competitive.”

Beyond the cash settlement, the agreement requires The Walt Disney Company to consider proposals for subscription packages that carry fewer Disney-owned networks, and potentially exclude ESPN entirely. The lawsuit had alleged that Disney previously refused to engage with any streamer unwilling to include ESPN in their lineup.

Disney stopped short of admitting any wrongdoing, but reportedly “agreed to settle to avoid the costs and risks of continued litigation.”

Who Gets a Check

The proposed settlement class covers customers who held a YouTube TV or DirecTV Stream live pay-TV subscription at any time between April 1, 2019, and the date of preliminary court approval. FuboTV subscribers were initially part of the class but have since been split into a separate case, meaning FuboTV-only customers who don't also subscribe to YouTube TV or DirecTV Stream are not eligible under this settlement.

The court has not yet granted preliminary approval. Once that happens, eligible subscribers will be able to submit claim forms. The final payment amount per person will depend on the length of their subscription history and will vary after attorney fees and administrative costs are deducted from the $50 million pool.

The settlement is non-reversionary, meaning The Walt Disney Company cannot reclaim any unclaimed funds.

Are you a YouTubeTV or DirecTV subscriber who was forced to purchase an ESPN subscription? Disney Fanatic would love to hear from you in the comments!