EXCLUSIVE: The Walt Disney Co. is suing Dish Network‘s digital subsidiary Sling TV, alleging that the pay-TV service included its networks without permission in a new suite of short-term packages.
Earlier this month, Sling unveiled “passes” offering access to its full bundle for a day, weekend or full week. The mini-bundles start at $4.99, a fraction of the usual minimum of $45.99 a month for a regular Sling subscription. They were rolled out at the start of college football and the NFL season as many consumers are taking stock of viewing options.
“Sling TV’s new offerings, which they made available without our knowledge or consent, violate the terms of our existing license agreement,” a Disney spokesperson said in a statement provided to Deadline. “We have asked the court to require Dish to comply with our deal when it distributes our programming.”
In the suit, which was filed Tuesday evening in U.S. District Court for the Southern District of New York, Disney alleges that Sling never once consulted the media giant about the move. The incremental packages have the potential to alter the TV landscape by giving consumers and easy on- and off-ramp to access programming. Beyond sports, it also could have applications for award shows like the Oscars or other entertainment or news programming.
The level of intentionally elevated churn that could result from the micro-bundles contradicts decades of precedent in the pay-TV business, where 2-year contracts long prevailed. Only in the streaming era have those long-term agreements (complete with cumbersome physical equipment) started to ease. Nevertheless, programmers still generally look for operators to offer their content for at least a month.
Sling’s new initiative is its latest jab at the status quo, though the pay-TV operations inside parent company EchoStar have dwindled amid a strategic pivot to the wireless telecom business. About a decade ago, the company launched the Hopper, a DVR that automatically skipped ads. While the new offering delighted many customers, it alienated network owners and their advertisers. Multiple media companies sued over the technology, resulting in a settlement in 2016.
Charlie Ergen, who co-founded Dish and is chairman of EchoStar’s board of directors, was known for his pugnacious and erratic approach to negotiating carriage deals when he directly oversaw Dish as CEO. Sling currently does not carry CBS as a result of that aggressive stance, and prominent networks like HBO and Univision have gone dark for long periods, sometimes permanently, as Dish has taken a hard line with programmers. Those who have done business with Dish and Sling in recent years say Ergen’s imprint is still readily apparent in many of the company’s decisions.
In an interview with Deadline earlier this month about the new offerings, Seth Van Sickel, SVP, Product and Operations at Sling TV, said programming partners were briefed about the company’s plans for the short-term subscriptions.
A Sling rep did not immediately respond to Deadline’s request for comment on the Disney suit.
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