Disney took legal action against YouTube following the allegation that they had lured away one of Disney’s key executives, causing concern that proprietary data might be disclosed.
In May, Justin Connolly stepped down from his role as President of Platform Distribution at Disney Entertainment and expressed interest in joining YouTube.
Connolly played a key role in making Disney’s television channels available to broadcasters and managing contracts that enabled the distribution of Disney’s content like films on streaming platforms.
Disney alleges that Connolly agreed to remain with their company until 2027, which includes a non-compete clause, thereby restricting him from interacting with rival companies – a situation that makes it challenging for him to join YouTube.
Disney fears top executive will leak confidential information to YouTube
According to C21, Disney has taken legal action in a California state court to prevent an appointment they find objectionable. They claim that the move violates their contract, disrupts their business relationships, and is unethical competition.
Based on Bloomberg’s report, it appears that Connolly is expected to take up a role at YouTube, a new position within the company. In this role, he will oversee YouTube’s interactions with significant media firms and expand their offerings of live sports content.
It’s rumored that Disney is worried Connolly might disclose proprietary details or business secrets, potentially giving them an edge in future negotiations when their distribution agreement with YouTube TV ends this fall.
According to Disney’s attorney, Kavin Gaut, Connolly possesses extensive understanding of Disney’s additional distribution agreements, the financial aspects surrounding Disney content being licensed to YouTube, and Disney’s negotiation tactics – both broadly and specifically with regard to YouTube.
It’s unfair for Connolly to break the contract he recently agreed upon, especially since Disney is currently in negotiations for a new licensing agreement. Another company appears to be trying to entice him away.
This legal action arises at a time when YouTube is breaking its own viewership milestones. In March alone, the platform represented close to 12% of all television viewing hours, surpassing competitors such as Netflix, Amazon Prime Video, and Disney+.
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2025-05-23 18:50