The limited-time pay-TV packages offered by Dish Network‘s Sling TV are in the legal crosshairs of another major media company: Warner Bros. Discovery has sued Dish, alleging the recently introduced Sling TV “Passes” violate the terms of their distribution agreement.
Last month, Sling introduced a suite of new packages that let you sign up to get a little as 24 hours of live TV, or pay for just one weekend or a single week. Disney and ESPN sued Dish over the packages on Aug. 29, and now WBD has as well.
“Dish’s brazen actions are causing and will continue to cause irreparable harm to Programmers,” Warner Bros. Discovery says in the lawsuit, filed Tuesday (Sept. 9) in the U.S. District Court for the Southern District of New York. “The Passes undermine Programmers’ business model, which depends on monthly subscriptions.” A copy of the complaint is at this link.
In a statement provided to Variety, a Warner Bros. Discovery spokesman said, “While we value our partnership with Dish, this program violates the terms of our agreement. We hope this issue is quickly and amicably resolved.”
Asked for a response, a spokesperson for EchoStar, the parent of Dish and Sling, declined to comment “on active litigation matters.”
However, the EchoStar rep provided this comment: “Sling TV has broken the mold of expensive, rigid bundles with flexible Sling Orange Day, Weekend and Week Pass subscriptions – pay-as-you-want instant access. This customer-first model challenges the old guard’s outdated pricing playbook, exposing their dependence on market power and resistance to change. With no long-term contracts and lower costs, Sling puts control back in the hands of subscribers, signaling a shift toward competition that puts consumer value ahead of monopolistic control.”
WBD’s lawsuit accuses Dish of breach of contract. It seeks to to enjoin Dish’s “unauthorized distribution, transmittal, and sale of Programmers’ valuable television networks and other content as part of Dish’s new Day, Week, and Weekend Passes (the ‘Passes’) on its Sling TV platform.”
The networks cited in WBD’s suit include TNT, CNN, TBS, HGTV, Investigation Discovery and Food Network. Warner Bros. Discovery alleges the new Sling TV Passes violate the distribution agreement it has with Dish because they are not standard monthly subscription plans.
“DISH is now breaching the DISH Affiliation Agreements by exceeding the scope of rights granted to it under those agreements through its recently announced and launched ‘industry-first’ Passes, which offer temporary access to the Programming without a subscription,” WBD says in the lawsuit. “In fact, DISH expressly stated in its press release and in some advertisements that the Passes would allow consumers to watch certain content ‘without a subscription.’”
According to Warner Bros. Discovery, Dish announced and launched the Sling TV Passes “without consulting or even notifying” the company. WBD said it sent Dish a cease-and-desist notice about the Sling TV Passes packages but that Dish refused to stop its “unauthorized use and distribution of the Programming.”
The Sling short-term packages “fundamentally disrupt” the standard pay-TV industry model by allowing customers to purchase access to “the most sought-after Programming, such as major sports events, essentially a la carte for a fraction of the cost that the consumer would have had to pay to watch the event on a pay-per-view basis,” per the WBD complaint.
Warner Bros. Discovery also alleges that Sling TV’s Passes threaten to “disrupt” its relationships with other pay-TV distribution partners, “who may now wish to distribute the Programming on a non-subscription basis too. Indeed, many of Programmers’ other distribution partners already have contacted Programmers about seeking the ability to offer similar short-term ‘passes.’”
In launching the Day Pass ($4.99), Sling pitched it as a way to watch live sports without signing up for a long-term plan: “The big game starts in 3 hours, and you need a way to stream live TV. You could sign up for yet another streaming service, but deep down, you know you’re going to overpay or forget to cancel. You feel stuck,” the Sling announcement says. “Enter Day Pass by Sling. Our industry-changing product gives you 24-hour instant access to 34 of the most popular live channels on cable for $4.99 — less money than you typically spend on lunch.”
Sling’s other packages are Weekend Pass ($9.99) and Week Pass ($14.99), which are designed for viewers who want to watch live sports, award shows or other events without paying for a month or more.
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