Movies

Disney vs. YouTube. The fight for talent heads back to court

BBG News

Over the past few years, YouTube has steadily grown into a significant rival for both streaming platforms and film production companies. It offers videos created by both beginners and experts, live broadcasts of significant events, and even NFL matches.

Now its growing threat to studios is headed to the courts.

Lately, the platform owned by Google has recruited Justin Connolly, who was previously serving as president of distribution for platforms at The Walt Disney Company.

On a Wednesday, Disney filed a lawsuit against YouTube and Connolly, claiming they broke their contractual obligations. According to Disney, Connolly breached an employment contract which would not have ended before March 2027 at the latest.

Under Connolly’s leadership, Disney managed the distribution strategies for their streaming services such as Disney+, in addition to handling third-party media sales. His responsibilities included overseeing the distribution of films and television programs across various platforms, including broadcasting, digital channels, subscription video services, and pay networks.

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For the past twenty years, YouTube has evolved from a platform for homemade videos into a powerful player in television, boasting billions of viewers worldwide and broadcasting many of the planet’s biggest concerts and sporting events.

In the course of his duties, Connolly oversaw Disney’s discussions for extending their licensing agreement with YouTube, as stated in their legal complaint.

In its lawsuit, Disney stated that it would be highly disadvantageous for Connolly to break the agreement he recently made and jump ship to another team, especially since Disney is currently negotiating a new licensing deal with the company attempting to recruit him.

Disney is attempting to secure a temporary order (preliminary injunction) that would compel Connolly and YouTube to abide by the terms of their employment contract with Disney.

YouTube did not immediately respond to a request for comment.

At YouTube, Connolly has been appointed as the new leader for their Media and Sports division. In this role, he will oversee YouTube’s interactions with media corporations and manage their live sports offerings, as reported by Bloomberg.

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In simple terms, you can watch the first week’s NFL matchup between the Los Angeles Chargers and the Kansas City Chiefs live, without charge.

As a passionate cinephile, I’m always on the lookout for engaging content, and it seems like YouTube is becoming a major player in the world of television. In March alone, YouTube accounted for an impressive 12% of U.S. TV viewing, surpassing other streaming giants such as Netflix. Furthermore, last year, YouTube’s revenue was estimated to be a staggering $54.2 billion, placing it as the second-largest media company in the market, just behind Walt Disney Co., according to MoffettNathanson’s research. This just goes to show that YouTube is not just a platform for cat videos anymore; it’s a significant player in the television and media industry!

As a film enthusiast, I’d say that unlike other mainstream streaming services, YouTube stands out by offering a unique blend of user-generated and professional studio content, creating an extensive and varied video library. The platform boasts more than 20 billion videos uploaded so far, as per their latest statement, with an average of over 20 million new videos added daily.

streaming platforms like Netflix are now hosting some YouTube content, for instance, the children’s show “Ms. Rachel.” During their latest financial conference, Netflix Co-CEO Greg Peters identified YouTube as a major competitor in the field.

On November 6, Disney stated in a lawsuit that Connolly signed an employment contract with them. This contract was set to begin on January 1, 2025 and end on December 31, 2027. However, according to the lawsuit, Connolly had the right to terminate the agreement earlier, specifically on March 1, 2027.

Under the terms of the contract, Connolly pledged to abstain from conducting business or collaborating with any organization that does business with Disney or its subsidiaries, according to the court document. Disney stated that YouTube was informed about Connolly’s employment arrangement with them, yet they extended an offer to him regardless.

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Netflix loses Hollywood executive poaching case in ruling in favor of Fox

Previously, some entertainment firms have taken legal action to prevent their competitors from stealing high-level executives.

2020 saw Activision Blizzard filing a lawsuit against Netflix due to their alleged recruitment of Activision’s Chief Financial Officer, Spencer Neumann. However, this case was eventually dropped in 2022, following Activision’s request for the lawsuit to be dismissed.

Previously, Netflix encountered legal challenges from Fox and Viacom, who accused Netflix executives of violating contract obligations by joining the streaming service based in Los Gatos. In 2019, a judge imposed an injunction that prohibited Netflix from recruiting bound rival executives from Fox or encouraging them to breach their fixed-term contracts.

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2025-05-23 22:01

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