Sling TV has won the first stage of a legal battle with Disney over the short-term passes that the streaming service introduced in August. The Dish Network-owned platform started offering daily ($5), weekend ($10) and weekly ($15) passes for its Sling Orange plan, which costs $46 on a monthly basis.
Disney owns several channels that are offered through Sling TV platforms, including multiple ESPN channels and the Disney Channel. It did not take too kindly to the new offerings — Disney promptly filed a lawsuit over the short-term live TV passes, as well as an emergency request to halt them. As reported by Cord Cutters, US District Judge Arun Subramanian dismissed the latter motion after determining Disney failed to demonstrate “it would suffer irreparable harm” without the court’s immediate intervention.
“Disney hasn’t shown it has lost customers due to the passes,” Judge Subramanian wrote in an 11-page ruling, per The Verge. “The networks are being distributed in the same platform, in the same manner, that they always have, but to a broader array of Sling customers.”
A viewer might not want to sign up to a streaming service for an entire month if they only want to watch a single game (say, a winner-take-all soccer match in which a team scores three utterly sensational goals to take their country to the men’s World Cup for the first time in 28 years). However, Disney asserted that, under its agreement with Sling TV, the platform can only offer access to its channels to traditional subscribers. Under Disney’s interpretation, those are consumers who have recurring monthly subscriptions.
Judge Subramanian disagreed, pointing out that the contract defines a subscriber as “a person intentionally authorized by Dish to receive any level of video programming service or package of programming networks via the Sling Platform.” The judge added that, as far as a “subscriber” goes, “there’s no minimum subscription length or other terms specified” and the term refers to anyone who is entitled to receive “any level of video programming service or package of programming networks.” Judge Subramanian argued that this “broad definition clearly covers users of the passes at issue in this case.”
Disney also claimed that the short-term passes would pull consumers away from its own standalone ESPN streaming service. The company offered up evidence to that end, but Judge Subramanian wrote that the documentation “doesn’t show that the passes siphon customers from ESPN Unlimited.” The judge added that, “if the passes do siphon customers from ESPN Unlimited, Disney hasn’t shown that those losses would not be quantifiable.”
While the short-term passes remain in place for now (with Sling TV offering $1 per day passes until November 30 to celebrate this initial victory), the breach-of-contract lawsuit Disney has filed will move forward. Judge Subramanian also pointed out that the current agreement between the two sides runs out within the next 12 months and they’re set to start renegotiating terms soon. So, if Disney wants to prohibit the short-term passes or have its networks excluded from them, it can try to hash that out in contract talks.
