Disney is not a fan of Sling TV’s new offering.
According to a report by Todd Spangler in Variety, Disney is suing Sling TV’s parent company, Dish Network, over the inclusion of ESPN channels in Sling’s new “Day Pass” package. The new product, which was announced earlier this month, allows subscribers to purchase 24-hour access to Sling Orange, which includes ESPN and ESPN2, for as little as $4.99. Sling has marketed this new product directly at sports fans.
Per Spangler, Disney claims that the new packages violate the company’s distribution agreements. “Sling TV’s new offerings, which they made available without our knowledge or consent, violate the terms of our existing license agreement,” a Disney rep told Variety in a statement. “We have asked the court to require Dish to comply with our deal when it distributes our programming.”
In addition to the Day Pass, Sling was also offering a Weekend Pass and a Week Pass for $9.99 and $14.99 respectively. Disney claims that, per its distribution agreements with Dish, the distributor is not authorized to sell its channels outside of packages that require monthly subscriptions.
It is unclear if other networks will join Disney in the effort; Fox and NBC-owned cable networks are notably unavailable in the Sling Orange package.
The lawsuit should come as no surprise. Last week, ESPN launched its new direct-to-consumer streaming service for $30 per month. Having the ability to purchase the channel for just a day or a weekend possibly undercut a portion of the network’s potential customer base.
It’s also unclear exactly how Sling TV would’ve compensated Disney for people that purchased its Day Pass. Distribution agreements generally carry a per-subscriber fee tied to a monthly subscription. Those agreements seemingly don’t allow distributors to pro-rate that fee if a subscriber isn’t paying for a full month.
While a novel concept, it seems that Disney is on strong footing in this dispute, and the days of Sling TV’s Day Pass might be numbered.
About Drew Lerner
Drew Lerner is a staff writer for Awful Announcing and an aspiring cable subscriber. He previously covered sports media for Sports Media Watch. Future beat writer for the Oasis reunion tour.