The ongoing dispute between Disney and Charter Communications over carriage fees has resulted in a proposed class action lawsuit against Charter by its subscribers. The lawsuit, filed in Florida federal court, accuses Charter of using its subscribers as pawns in a “clear money grab” and alleges breach of contract and violations of Florida consumer protection laws. The proposed class action aims to represent all Charter customers whose access to Disney-owned networks were cut off during the blackout, as well as a smaller class of Florida consumers who were charged the full amount of their bill despite not having access to all advertised services.
The dispute began when Charter customers experienced an outage of services on August 31, just before the start of a college football game. Viewers attempting to watch the game on ESPN were met with a message from Charter blaming Disney for removing its programming from Spectrum. The blackout has continued, preventing Charter customers from accessing Disney channels such as SEC and ACC networks, FX, and National Geographic.
According to the lawsuit, consumers have suffered monetary losses due to overcharges for undelivered services, as well as the inconvenience of having to find alternative ways to watch their desired programming. The lawsuit also alleges that Charter knew the debts they sought to collect were not legitimate, as they had knowledge that they were not providing the contractually obligated services they were required to supply.
The lawsuit contends that Charter is essentially holding its consumers hostage as part of its negotiations with Disney, in an attempt to change the economics of pay-TV. The two sides have been negotiating a deal that Charter executives believe could help mitigate the impact of cord-cutting and streaming on the industry. However, Charter has taken issue with Disney’s demands for higher license fees and less packaging flexibility, stating that they “ignore the realities of a shifting marketplace.” Charter has even threatened to abandon the video business altogether if an agreement cannot be reached.
Despite the blackout, Nielsen data shows that a college football game between Florida State and Louisiana State aired on ABC averaged 9.1 million viewers, a 20 percent increase from the previous year and a seven-year high for the network. This demonstrates the continued popularity of live sports events, even in the face of disruptions caused by carriage disputes.
Charter has yet to respond to requests for comment on the lawsuit. The proposed class action seeks an order that would require Charter to cease blacking out Disney channels or provide reimbursement for those that are not being provided. Charter has currently offered customers a $15 rebate, but only if they call into customer service.
In conclusion, the ongoing carriage dispute between Disney and Charter has sparked a proposed class action lawsuit, with Charter subscribers alleging breach of contract and violations of Florida consumer protection laws. The lawsuit seeks to represent affected Charter customers and calls for Charter to cease blacking out Disney channels or provide reimbursement for services not provided. The outcome of the lawsuit could have significant implications for the future of pay-TV and the way carriage disputes are resolved.