Disney Files Lawsuit Against Dish Over New Sling TV Offerings

NEW YORK, NY – Disney filed a lawsuit on August 28 against Dish Network in the Southern District of New York, alleging that Dish’s new Day Pass service violates their existing distribution agreement. The suit, led by attorneys from O’Melveny & Myers, seeks a preliminary injunction to stop Dish from what Disney calls the “unauthorized transmittal and distribution” of its valuable television programming, including ESPN.

According to the complaint, Dish introduced the Day Pass service without Disney’s consent, allowing viewers to access ESPN channels for $4.99 for 24 hours. This service, marketed as a way for customers to watch ESPN without a subscription, is said to undermine Disney’s traditional subscription model, which depends on monthly fees.

The complaint states that Disney learned about the Day Pass through trade press articles and not through direct communication from Dish. Disney emphasized that this arrangement is inconsistent with their agreement, which was designed around a monthly subscription model. Disney’s programming decisions, such as their acquisition of rights to the U.S. Open, rely on this model for financial viability.

Dish’s Aug. 12 press release promoted Day Pass as a cost-effective viewing option, enticing customers with phrases like “24 hours of football for $4.99.” Disney claims this type of offering threatens their longstanding relationships with distribution partners and could devalue ESPN’s programming.

A spokesperson for Sling TV responded by stating that they are committed to providing options suited to customer needs, asserting the lawsuit is “meritless” and that Dish will defend its practices vigorously. Dish’s legal team plans to file a response soon, likely citing the validity of their agreement with Disney, which they claim has been in place for decades.

This legal battle places Disney in the role of plaintiff, challenging a new market tactic implemented by Sling TV. The dispute arises just as the college football season begins, raising questions about the impact of these new streaming options on mainstream cable models.