In the era of streaming, nearly every major studio and media company have jumped into the game. However, some consumers have noticed, as the market becomes more saturated, that Disney has a much larger hold of the industry.
What’s Happening:
- According to Deadline, Disney’s efforts to have an antitrust class action lawsuit dismissed have failed once again.
- The lawsuit, filed by YouTube TV subscribers back in November of 2022, claims that Disney’s control of ESPN and Hulu have allowed the company to inflate prices in the streaming market.
- It also states that Disney requires streamers, including YouTube TV and Sling TV subscribers, to include ESPN in base packages, raising prices for consumers.
- While Disney unsuccessfully petitioned the court to dismiss the suit, California based Judge Davila has cut the possibility of damages for the plaintiffs. If successful, the suit would still hold Disney accountable for any antitrust violations in the future.
- Judge Davila wrote “Because Plaintiffs have specifically alleged that the terms of the MFN provision permit Disney to set a price floor and raise its competitors’ ESPN prices (which translate to the subscription package prices) whenever it raises Hulu’s prices, the Court finds Plaintiffs’ allegations sufficient to plead Disney’s market power in a well-defined SLPTV market in the United States.”
- The Walt Disney Company has not commented on the ruling.
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