Disney's Attempt to Stop Sling TV's Short-Term Passes Falls Short

Legal Battle Continues Despite Initial Setback for Disney

In a recent legal skirmish, Sling TV has managed to fend off Disney's efforts to suspend its new short-term streaming options, at least for the time being. Owned by Dish Network, Sling TV recently began offering its customers daily ($5), weekend ($10), and weekly ($15) passes for its Sling Orange service, typically priced at $46 per month.

Disney's holdings include numerous channels available on Sling TV, such as ESPN and the Disney Channel. Upon introduction of these temporary access options, Disney quickly initiated legal proceedings, including an urgent request to cease the passes. However, U.S. District Judge Arun Subramanian refused this request, noting that Disney had not shown evidence of severe harm if the passes were allowed to continue.

Judge Subramanian's ruling highlighted that, as of yet, Disney had not proven any customer loss due to these short-term offerings. He remarked that while the same channels are being provided on Sling TV, they are simply reaching a broader spectrum of their users now.

Some consumers might prefer not to commit to a monthly subscription for viewing a single event, such as a pivotal sporting match. Disney, however, contended that their agreement with Sling TV limits channel access exclusively to regular subscribers, meaning those with ongoing monthly contracts.

Judge Subramanian offered a different interpretation, stating that the term 'subscriber' encompasses any individual given access by Dish Network to any level of their video programming service. The lack of specification for minimum subscription duration in the contract means that the short-term pass users also qualify under this definition.

Disney also voiced concerns that these passes would divert customers from its independent ESPN streaming platform. Despite presenting supporting documents, the judge found this evidence insufficient. He emphasized that any customer diversion from ESPN Unlimited hasn't been demonstrated to cause financial harm that is unmeasurable.

While these short-term access passes remain active (with an added $1 per day offer from Sling TV until November 30 as a victory lap), Disney's breach-of-contract suit continues. Judge Subramanian noted that the current agreement is up for renegotiation within a year. If Disney aims to restrict these passes or change network inclusion terms, they will need to address this in forthcoming contract discussions.