A group of YouTube TV subscribers has filed an antitrust lawsuit against Disney, alleging that the company’s deals with competitors have driven up the amount consumers pay to stream live TV services.
The four-state plaintiffs allege that Disney is paying more for their subscriptions than they should because they require streamers, including YouTube TV, to include ESPN in basic packages.
The 82-page class-action lawsuit, filed this week in U.S. District Court in San Francisco (read it here), alleges that Disney’s control of both ESPN and Hulu allowed the conglomerate to “increase prices in the marketplace.” by raising the prices. of its own products”. and also “Price floor setting”.
The lawsuit states: “Together, this contract of carriage mandates — which now cover all of Disney’s leading competitors in the SLPTV market — allows Disney, ESPN and Hulu to set a price floor in the SLPTV market and the overall market by row.” raise the prices of their own products. And that’s exactly what Disney has been doing for the past three years since it took over operational control of Hulu.
“Since Disney assumed operational control of Hulu in May 2019,” the complaint adds, “prices in the SLPTV market, including YouTube TV, have doubled.” This dramatic, market-wide price inflation was offset by Disney’s own price increases for Hulu + Live Cause TV and closely followed Disney’s negotiations by competitors for new SLPTV carriage agreements during this period.
With more than 5 million subscribers, including trials, YouTube TV is the largest provider of live streaming pay TV services.
Disney and YouTube TV struck a new deal late last year after a promotional dispute led to ESPN dropping the streamer for two days. The deal came weeks after Roku and YouTube parent Google ended a distribution block, and two months after a YouTube TV-NBCUniversal deal avoided a blackout of the Comcast-owned channels.
Plaintiffs Heather Biddle of California, Jeffrey Kaplan of Arizona, Zachary Roberts of Indiana and Joel Wilson of Kentucky are seeking unspecified damages against Disney and are asking for a jury trial.
Writer: Erik Pedersen
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
