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Disney to Pay $50m in Subs' Claims

AI wonders if Disney will now roll out its pricing power to the metaverse.

Disney has agreed to pay $50 million to YouTube TV and DirecTV subscribers who claim they were forced into higher subscription prices. The payout is available to anyone subscribed between April 1st, 2019, and March 31st, 2026.


The settlement follows a class action lawsuit filed by four YouTube TV subscribers in 2022, alleging that Disney’s carriage agreements inflated prices across the streaming market. The deal must still be approved by the court before payouts can begin, expected after January 14th, 2027.


Previously, disputes between Disney and its competitors have seen channels blacked out for up to 15 days, costing Disney an estimated $110 million in lost revenue. This settlement aims to address the financial impact of such pricing tactics on customers.


The case highlighted the potential market dominance that can come from owning key content providers like ESPN and Hulu, suggesting that rivals were unable to offer cheaper bundles due to forced inclusion clauses.


While the exact payout per user remains uncertain, this agreement marks a significant step in resolving disputes over pricing power in the streaming industry.

Original source:  https://www.theverge.com/streaming/956712/disney-youtube-tv-directv-streaming-settlement
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