Disney has filed a lawsuit against YouTube after the Google-owned platform poached one of its top executives, fearing he will leak confidential information.
In May, Justin Connolly resigned from his position as Disney Entertainment’s president of platform distribution and looked to sign with YouTube.
Connolly was responsible for bringing Disney’s TV networks to providers and overseeing contract agreements to bring Disney’s content, such as movies, to streaming services.
Disney claims that Connolly had signed a deal with them to keep him with the company until 2027 and was barred from engaging in dealings with competitors – something that would prevent him from joining YouTube.
Disney fears top executive will leak confidential information to YouTube
As reported by C21, Disney filed a lawsuit in state court in Los Angeles to stop the appointment, alleging breach of contract, tortious interference with contractual relations and unfair competition.
According to Bloomberg, Connolly was set to join YouTube as part of a new position at the company where he would be in charge of the platform’s relationship with major media companies and growing the service’s live-sports portfolio.
Disney reportedly fears that Connolly could reveal confidential information or their trade secrets. The company’s distribution deal with YouTube TV expires in the fall and Connolly’s inside knowledge could put Disney at a disadvantage in the upcoming renegotiations.
“Connolly has intimate knowledge of Disney’s other distribution deals, the financial details concerning Disney’s content being licensed to YouTube, and Disney’s negotiation strategies, both in general and in particular with respect to YouTube,” Disney lawyer Kavin Gaut said in the complaint.
“It would be extremely prejudicial to Disney for Connolly to breach the contract which he negotiated just a few months ago and switch teams when Disney is working on a new licensing deal with the company that is trying to poach him.”
This lawsuit comes as YouTube is setting viewership records. In March, the platform accounted for nearly 12% of all TV watched, beating out streaming services like Netflix, Prime Video, and Disney+.
Content shared from www.dexerto.com.