YouTube TV's ABC, ESPN, and Disney Networks Blackout: A Price Dispute with Google
In a recent development, YouTube TV subscribers are facing a blackout of ABC, ESPN, and other Disney-owned networks, as the two parties remain at odds over a deal renewal. The dispute centers around price, with Disney demanding rate hikes that Google's YouTube TV is unwilling to agree to. This disagreement has led to a temporary suspension of Disney's channels, affecting millions of TV users across the country.
The blackout will commence at 9 p.m. PT on October 30th, when the previous agreement between the companies expires. YouTube TV subscribers will lose access to local ABC stations and ESPN sports programming, including coverage of the NFL, college football, NBA, and NHL games. Additionally, any recorded content from these networks will be removed from YouTube TV's DVR library.
Disney first alerted viewers about the potential blackout on October 23rd, warning that its networks might be removed from YouTube TV. As of now, YouTube TV is the leading internet TV service in the U.S., with over 10 million subscribers, while Disney's Hulu + Live TV and Fubo service have nearly 6 million subs in North America. A YouTube spokesperson criticized Disney's tactic, stating that their threat of a blackout was used to negotiate higher prices for customers, which they are now following through on.
Disney argues that YouTube TV is demanding a better deal than any other distributor in the market, including Comcast and Charter, and is unwilling to pay market rates for Disney's networks or accept terms similar to those agreed upon with other distributors, such as Hulu + Live TV and Fubo. They have also proposed new genre-based tiers and packaging flexibility to provide customers with more options.
This dispute is not an isolated incident. Disney has had similar carriage disputes with other media conglomerates, such as Paramount Global, Fox Corp., and NBCUniversal, which eventually reached new deals without blackouts. However, YouTube TV's recent blackout of Univision and TelevisaUnivision-owned networks in September highlights the ongoing challenges in the industry.
The complex relationship between Disney and Google is further complicated by the recent settlement of a lawsuit involving Justin Connolly, Disney's former head of distribution, who joined YouTube as the VP of global media. The lawsuit, which alleged breach of contract, was resolved after Disney lost a legal bid to block Connolly's employment at Google.
As the blackout unfolds, YouTube TV subscribers are left without access to their preferred content, while Disney and Google continue to negotiate. The outcome of this dispute will likely have significant implications for the future of streaming services and content distribution.
