The topic YouTube TV subscribers win in lawsuit against Disney over driving up streaming costs is currently the subject of lively discussion — readers and analysts are keeping a close eye on developments.
This is taking place in a dynamic environment: companies’ decisions and competitors’ reactions can quickly change the picture.
… these carriage agreement mandates—which now cover all of Disney’s leading competitors in the SLPTV Market—allow Disney to use ESPN and Hulu to set a price floor in the SLPTV Market and to inflate prices marketwide by raising the prices of its own products. And this is exactly what Disney has done in the past three years, since it took operational control of Hulu.
The complaint was filed around the time that YouTube TV’s price jumped to $65, a huge hike from its original $35 price tag, upon adding Disney-owned channels including the aforementioned ESPN. During a 2021 dispute, YouTube TV effectively (but not outrightly) said that its base service would be $15 cheaper without Disney’s programming.
In a tweet at the time, YouTube TV hinted that networks requiring carriage of a “full portfolio of channels” increased the “overall price of the service.”
The agreement also says that Disney must “consider” offering its distributor partners, such as YouTube TV, the option to carry fewer channels including ESPN, but there seems to be no actual requirement.