YouTube TV and DirecTV customers can now claim their shares in Disney’s $50 billion antitrust settlement.
The November 2022 lawsuit alleges that Disney relied on anti-competitive practices to “depress price” in the subscription television market.
ESPN, which is owned by the Walt Disney Company, is the most expensive channel for streaming services that can be offered out of pocket, the class action lawsuit says. Disney also owns Hulu, a YouTube TV competitor.
The lawsuit argues that Disney’s agreements with television streaming services “give Disney pricing power across the entire market.” The suit points to Disney’s policies that require broadcasters’ basic bundles to include ESPN, which drives up costs.
On March 31, the judge gave preliminary approval to a proposed judgment in the case, Biddle v. The Walt Disney Co., in the US District Court for the Northern District of California. (Heather Biddle is one of the YouTube TV subscribers who brought this action.)
Disney denies wrongdoing but has agreed to fix the problem.
Who is eligible for a Disney payment?
The proposed settlement covers customers who had YouTube TV subscriptions on or after April 1, 2019, through March 31, 2026, as well as “all individuals who have purchased DirecTV live streaming pay TV subscriptions (known at various times, at least as DirecTV Stream, DirecTV Now and AT&T TV Now),” according to the ruling judge.
How much is the Disney settlement fee?
The exact amount of the payment is not yet known.
“Payment amounts will be calculated once the number of valid claims has been determined, with the goal of a full settlement without reimbursement to Disney,” according to a March court filing by the plaintiffs seeking preliminary approval of the settlement.
The settlement includes approximately 17 million class members, the report said. Divide $50 million by that large class size — and subtract attorney fees and other costs — and you get less than $3 per claim.
But E-piq Class Action & Claims Solutions, the proposed settlement administrator, expects a claims rate in the ballpark of 2% to 5%, according to a March filing.
Those figures suggest that some long-term customers may get more than just token payments.
There is one catch: Payment amounts will depend on the plaintiff’s state of residence. The bulk of the money (90%) is slated to be paid to residents of “extinguisher jurisdictions,” or states that allow so-called “indirect consumers” to sue for antitrust damages. That includes most states (36) but leaves residents of the remaining 14 states to split a small fund.
How do you seek compensation?
Eligible customers can fill out a claim form by September 8. The process can be completed online or by mail, and payments will be distributed digitally or by check.
The compensation website includes an online claim form, which prompts the user to enter a “Unique ID” number and PIN. According to Epiq, eligible customers should receive these numbers via email or mailed payment notifications.
Before payments can be issued, the settlement will need final approval from the judge, who has scheduled a hearing on Jan. 14, 2027. Any complaints must be resolved, and the entire process can take months or years.
