‘Blind Side’ Subject’s Conservatorship Terminated Amid Legal Fight Over Movie ProfitsGeneral view of a Disney streaming services billboard above the El Capitan Entertainment Centre promoting their combined content of Disney+, Hulu, and ESPN+ on October 1, 2021 in Hollywood, California.
Not only could Disney’s stewardship of the companies have reduced consumer choice and increased subscription prices, U.S. District Judge Edward Davila concluded that Disney may have enough control over the live-streaming pay TV market to impair competition. He pointed to its ability to “prevent or retard entry” of competitors by “mandating onerous terms or by outright refusing to license live television content.
To enter the live-streaming pay TV market, a company must enter into enough carriage agreements with cable providers to secure a critical mass of channels. In this scenario, Disney would be incentivized not to do business with that firm since doing so could undercut its position in the market, according to the order.