A federal judge in New York rejected Disney’s request to block Sling TV’s short-term passes, which give viewers the ability to stream live content for at least a day. In a ruling Tuesday, U.S. District Judge Arun Subramanian ruled that Disney did not prove that Sling TV’s passing caused “irreparable harm” to the entertainment giant, as previously reported. cord cutter,
Disney sued Sling shortly after the live TV streaming service launched, allowing viewers to purchase temporary access to a library of channels for a single payment of $4.99 for a one-day pass. Several channels included in the package are owned by Disney, including ESPN, ESPN2, ESPN3, and Disney Channel. In its lawsuit, Disney argued that the passes violate an agreement with Sling TV that says the service must provide customers access to its content through a monthly subscription.
However, Judge Subramaniam argues that this claim is unlikely to succeed, as the contract does not set a “minimum subscription period”, saying that the agreement’s “broad definition of customer” “clearly covers nearby users.” Additionally, the ruling states that Disney failed to show how the passes could harm the company’s reputation or “subscribers” of its new ESPN Unlimited live sports streaming service.
“Disney has not shown that it has lost customers because of the pass,” Judge Subramanian writes. “The networks are being delivered in the same ways, on the same platforms, as they always have, but to a broader range of Sling customers.”
Sling TV is offering its one-day pass at a discounted rate of $1 to celebrate the court victory, although Disney’s contract breach lawsuit against the streaming service will continue. “For too long, traditional ‘big media’ companies have deliberately stifled innovation and forced customers to pay for more content than they want or need,” Seth Van Sickel, senior vice president of Sling TV, said in a press release. “We believe customers deserve the flexibility to stream the content they want, whenever they want, at a price they can afford. Consumers deserve affordable TV that isn’t tied to long-term contracts or bloated offers.”