Disney, Consumers Ink $50 Million Settlement in Streaming Case

Walt Disney Co. has reached a $50 million settlement in a lawsuit alleging the entertainment and media company colluded with other streaming live television providers to inflate subscription prices.

Under the proposed deal, Disney will compensate class members for alleged overcharges for YouTube TV and DirecTV Stream subscriptions, according to a request for settlement approval filed last week in the US District Court for the Northern District of California.

A settlement hearing is planned for March 19.

Livestreaming has become a frequent target of antitrust scrutiny as plaintiffs claim companies harm consumers with anticompetitive bundling strategies and inflated subscriptions.

Consumers sued Disney in 2022, alleging the company required ESPN to be included in basic cable packages and hiked prices across the entire US streaming live pay TV market.

Disney also allegedly contracted with rival streamers that allowed them to air ESPN content but blocked their ability to offer a bundle to subscribers at a lower price than a bundle including ESPN.

In 2024, Judge Edward J. Davila partly denied Disney’s motion to dismiss the case.

The proposed settlement also includes injunctive relief, under which Disney would consider proposals from streaming providers that would allow them to offer their subscribers a monthly paid subscription service that doesn’t include ESPN channels.

An attorney for the subscribers declined to comment. Disney didn’t immediately respond to a request for comment.

The plaintiffs preliminarily asked for no more than 30% of the settlement fund—$15 million—in attorneys’ fees. They are also seeking to stay the case pending settlement approval.

Bathaee Dunne LLP represent the subscribers. O’Melveny & Myers LLP represents Disney.

The case is Biddle v. Walt Disney Co., N.D. Cal., No. 5:22-cv-07317, 3/6/26.