Three possibilities I can think of:
1. Dish pays Starz a flat fee to ditribute the channel as a premium service. Dish paid the flat fee and is now giving many the service for free. Disney and Starz object to this.
2. Dish pays Starz a percentage of revenues it collects for the channels. Dish give the channel away, reducing revenue to Starz. Disney and Starz object to this.
3. Dish is paying whatever the wholesale cost of Starz for each sub, and then giving to subs for free. Disney and Starz object to this, but in this case they really don't have much of an argument.