Disney and Google failed to reach a renewal agreement before the existing contract expired on Thursday, October 30th, resulting in the removal of up to 20 Disney channels, including ABC, ESPN, and more, from YouTube TV. This move left subscribers unable to watch programs from these mainstream television networks.
YouTube TV stated that Disney’s proposed terms were too costly, leading to potential price hikes for users and causing them to drop the channels. On Thursday, YouTube released a statement accusing Disney of using the threat of blackout on YouTube TV as a negotiation tactic to force price increases on users and promote their streaming services such as Hulu + Live TV and Fubo.
In response, Disney claimed that YouTube TV refused to pay a fair fee for their channels, thus choosing to “deprive users of the most important content.” The California entertainment giant also accused Google of using its market dominance to eliminate competition and disrupt the industry-standard terms negotiated successfully with other distributors.
YouTube TV stated in a release that despite their best efforts, they were unable to reach a “fair agreement” and proceeded to remove over 20 channels from the platform. If these channels remain unavailable for an extended period, the company will offer $20 compensation to users. They also expressed their commitment to continued collaboration with Disney to reach an agreement.
Affected channels by this blackout include ESPN and its sister sports channels, ABC, FX, National Geographic, Disney Channel, and Freeform.
Disney’s Co-Chairs Dana Walden and Alan Bergman along with ESPN President Jimmy Pitaro sent a memo to all Disney employees on Friday, noting that besides the failure to reach an agreement, YouTube TV had “deleted all previously recorded Disney programs and online activities from its subscribers’ library.”
Negotiations between the two parties had been ongoing, but they failed to reach a new distribution agreement before the existing contract expired at 11:59 p.m. Eastern Time on October 30th. If an agreement is not reached by Saturday morning of this week, YouTube TV users may miss out on watching college football games. Moreover, if the channels are not restored by the following week, they might lose the opportunity to watch “Monday Night Football.”
YouTube TV pays broadcast companies for airing their channels, and tensions have been high in recent months over contract renewals. Last month, NBC Universal’s content was almost removed from YouTube TV, but an interim agreement was reached to avoid blackout of programs like “Sunday Night Football” and “America’s Got Talent.”
CNBC reported last week that Disney was willing to offer a distribution agreement to YouTube TV, allowing some subscribers to access Disney+, Hulu, and ESPN+ for free. However, Disney reportedly turned down YouTube’s request to integrate their streaming content directly into YouTube TV, insisting that users should access Disney+ and other platforms separately.
According to CNBC, Disney refused this proposal and has no intention of changing their stance. The company is not looking to incorporate their streaming service into YouTube’s prime-time channels. Nielsen data shows that YouTube is the most engaging media distribution platform in the United States, accounting for over 13% of TV viewing time in July. Analysts from MoffettNathanson told CNBC that YouTube is projected to become the highest-earning media company in 2025, surpassing Disney.
(Reference: CNBC)