Disney Sues Sling TV Over Day Passes

In this photo illustration, the Disney Plus logo is seen displayed on a smartphone screen.

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The Walt Disney Co. is taking Sling TV to court. Deadline reports in an exclusive that the company is suing the Dish Network subsidiary for including its networks in short-term packages.

Sling allows users to stream live TV and recently introduced a new pay-TV model for under seven-day bundles. While Sling’s services usually start at $45.99 a month, the new system includes a $4.99 day pass for a 24-hour period, a $9.99 Weekend Pass and a $14.99 7-day pass. However, on Tuesday, August 26, Disney filed a suit with the U.S. District Court for the Southern District of New York, alleging that Sling did not consult the company about the new system.

In the Deadline report, a Disney spokesperson said in a statement, “Sling TV’s new offerings, which they made available without our knowledge or consent, violate the terms of our existing license agreement. We have asked the court to require Dish to comply with our deal when it distributes our programming.” A Sling spokesperson made a statement to Deadline that the company will “vigorously defend our right to bring customers a viewing experience that fits their lives, on their schedule and on their terms.”

The packages are radically different from the current streaming landscape. Currently, most companies offer free trial periods. However, after those periods, almost every service charges monthly or yearly. Even the advent of monthly subscriptions breaks from older TV provider models which, in the past, were historically at least yearly.

Sling’s new model seems tailored especially to fans of sports and other live televised events. With the upcoming NFL season, the packages may be especially popular. Since Disney is the majority owner of ESPN and offers a bundle that includes ESPN, how these new Sling bundles will affect sports fans may be especially top of mind. However, it could also award shows or other televised programming for the company.

The TV landscape has been changing in recent years. Streaming services have eclipsed cable TV, especially for younger viewers. Pew reported in 2017 that only around 16% of Americans aged 18-29 subscribed to cable or satellite. While streaming TV options have been growing, that number has likely even fallen further. Even a company like Sling existing points to the gap between a streaming forward market and traditional live TV. These packages may prove popular with younger viewers. However, the possible popularity may also be the issue for Disney.