YouTube TV Subscribers See ESPN, ABC, and More Go Dark as Google and Disney Fail To Reach Carriage Deal
Time has officially run out on the carriage negotiations between YouTube TV and Disney, leaving millions of subscribers blacked out from numerous popular television stations.
As the two sides failed to reach a new deal before midnight last night, channels including ESPN, ABC, Disney Channel, Freeform, and National Geographic have gone dark for YouTube TV subscribers, leaving them bereft of the biggest sporting events of the weekend.
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After months of negotiations, the two media powerhouses have failed to come to a middle ground. Once again, users will pay the price.
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So, what is the hangup?
ESPN Unlimited Creates a Deadlock
According to a report from Cord Cutters News, the sticking point in negotiations between YouTube and Disney revolves around ESPN Unlimited.
Photo: ESPN
Since launching its new direct-to-consumer app, ESPN has sought to reach new customers by partnering with television providers.
By including the streaming service in cable packages, Disney can expand its subscriber base while ensuring ESPN remains the go-to destination for sports.
To include ESPN Unlimited as part of its content packages, however, YouTube would have to pay. That cost, they say, would be passed along to consumers.
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The other sticking point between YouTube TV and Disney is “slim packages.”
The Fight Over Packaging
As we have seen in previous carriage disputes, service providers have increasingly pushed for niche-based packages and more flexible options for consumers, to help offset the exodus to streaming.
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Specifically, Google has pushed for genre-based packaging and more customer choices.
While Disney says they are amenable to the idea, the company also argues that YouTube TV wants a better deal than providers like Comcast and Charter, even though those companies have more television customers.
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“Unfortunately, Google’s YouTube TV has chosen to deny their subscribers the content they value most by refusing to pay fair rates for our channels, including ESPN and ABC,” a Disney spokesperson said. “Without a new agreement in place, their subscribers will not have access to our programming, which includes the best lineup in live sports — anchored by the NFL, NBA, and college football, with 13 of the top 25 college teams playing this weekend.”
Essentially, Disney argues, Google is leveraging their massive media imprint to strongarm the Mouse House into a sweetheart deal.
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“With a $3 trillion market cap, Google is using its market dominance to eliminate competition and undercut the industry-standard terms we’ve successfully negotiated with every other distributor. We know how frustrating this is for YouTube TV subscribers and remain committed to working toward a resolution as quickly as possible,” the rep continued.
YouTube Fires Back
For their part, YouTube alleges that Disney is attempting to undercut them by negotiating a deal that would raise YouTube TV prices. Disney would then capitalize on the opportunity by offering cheaper deals through its own platforms.
Photo: Variety
“Last week Disney used the threat of a blackout on YouTube TV as a negotiating tactic to force deal terms that would raise prices on our customers,” a YouTube spokesperson said in a statement. “They’re now following through on that threat, suspending their content on YouTube TV. This decision directly harms our subscribers while benefiting their own live TV products, including Hulu + Live TV and Fubo.”
Should the blackout continue, YouTube will offer a $20 credit to subscribers.
Photo: Axios
“We know this is a frustrating and disappointing outcome for our subscribers and we continue to urge Disney to work with us constructively to reach a fair agreement that restores their networks to YouTube TV. If their content remains off YouTube TV for an extended period of time, we’ll offer subscribers a $20 credit,” the spokesperson continued.
How Long Will the Blackout Last?
As we have seen in previous carriage negotiations, despite all the posturing, there is a blueprint for a middle ground.
The Walt Disney Company
What makes this dispute different, however, is the sheer size of Disney and Google.
As the two media behemoths dig in, we could see an extended blackout.
Photo: YouTube
Hopefully, however, a resolution will be reached soon.
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