Disney is facing antitrust accusations from Dish Network, which claims that the media giant is misusing its dominance in live sports through its ESPN brand. In a court filing in New York federal court, Dish argues that Disney coerces distributors to pay excessive fees for content that is underutilized by customers. According to Dish, these fees amount to “hundreds of millions of dollars” annually.
The counterclaims by Dish outline twelve counts that include allegations of attempted monopolization and unreasonable restraint of trade. Dish suggests that Disney is leveraging its significant influence over major sporting events, such as the Super Bowl and NBA Finals, to impose costly channel bundles on distributors, effectively eliminating the opportunity for customers to access more affordable, sports-centric alternatives.
Over the previous year, Dish contends that Disney has made several attempts to create its own distribution platform, undermining its distributors by blocking the offering of streamlined “skinny sports bundles.” They cite the notable Fubo/Venu incident as an illustration of this alleged monopolistic behavior. Earlier in 2024, Fubo, a smaller sports distributor, sued Disney to prevent the launch of Venu Sports—a collaboration that included heavyweights ESPN, Fox, and Warner Bros. Discovery. Fubo successfully halted Venu’s launch, and although Disney later acquired Fubo, the suit was dropped after the U.S. Department of Justice investigated the deal for potential antitrust implications and ultimately approved it.
Dish’s counterclaims arise from Disney’s original lawsuit, which expressed concern over Dish’s introduction of “Day Pass” options through its Sling TV service. These options allow subscribers to access ESPN and other Disney channels on a short-term basis, providing a flexible pricing model but allegedly violating existing contractual agreements requiring monthly subscriptions. While Dish acknowledges the launch of these passes in August and admits to some incorrect promotional materials, it maintains that it had no obligation to obtain Disney’s approval for these offerings. Dish characterizes Disney’s lawsuit as an attempt to maintain its control over the market for affordable sports bundles.
In a response to Dish’s claims, a spokesperson for Disney asserted that the counterclaims lack merit and are merely a diversion from Dish’s own wrongdoings. Disney expressed confidence in its legal position, stating that it looks forward to vindicating itself in court.
This legal battle highlights ongoing tensions in the media industry as companies navigate the complexities of sports rights and viewer preferences. As the outcome unfolds, it may lead to significant changes in the distribution of live sports and the pricing models that consumers encounter.