YouTube TV and Disney Extend Blackout as Carriage Deal Talks Stall

Millions of YouTube TV subscribers are facing another weekend without access to Disney-owned channels. The blackout, which began on October 31st, affects major networks including ABC, ESPN, and FX. Negotiations between Google’s YouTube TV and Disney have reached a significant impasse, with both sides publicly blaming the other for the failure to reach a new distribution agreement.

This dispute removes a significant amount of live sports and entertainment from the streaming service. According to Reuters, the stalemate is centered on pricing and packaging terms. The ongoing blackout is now impacting viewership numbers for major sporting events typically broadcast on the missing channels.

Disney Claims It Offered Cost Savings and Flexible Packages

In an internal memo obtained by The Associated Press, Disney executives stated they offered YouTube TV a deal that would cost less overall than their previous contract. They claimed this would allow for real savings to be passed to subscribers. The memo was signed by Disney Entertainment co-chairs Dana Walden and Alan Bergman and ESPN chairman Jimmy Pitaro.

Disney also says it proposed innovative, customized programming packages. These bespoke bundles would have been tailored for sports fans, entertainment viewers, and families. The company asserts its terms are in line with deals made with over 500 other distributors.

YouTube TV Accuses Disney of Misrepresentation in Negotiations

YouTube TV has publicly refuted Disney’s characterizations of the negotiations. A spokesperson for the service stated that Disney is misrepresenting the offers on the table. They claim Disney is asking for a higher rate than what other major providers like Charter and DirecTV pay.

The streaming service is pushing for a “Most Favored Nation” clause, a standard in the industry for large providers. This clause would guarantee YouTube TV the lowest available market rate if it becomes the largest paid TV provider. YouTube TV encourages Disney to return to the table to make a fair agreement for their mutual customers.

The extended YouTube TV Disney blackout highlights the fierce battle over streaming rights and costs. With no deal in sight, subscribers are left searching for alternatives to watch their favorite shows and live games. The resolution of this carriage dispute will set a critical precedent for the entire streaming television industry.

Thought you’d like to know

Which channels are affected by the YouTube TV and Disney dispute?

The blackout includes all Disney-owned channels. This means subscribers have lost access to ABC, ESPN, ESPN2, FX, National Geographic, and all other networks under the Disney umbrella.

How long has the blackout been going on?

The channels were removed from the YouTube TV service on October 31st. The dispute has now extended for multiple weeks with no announced resolution date.

What is the main reason for the carriage dispute?

The core issue is the cost YouTube TV must pay to carry Disney’s channels. Both companies disagree on what constitutes a fair market rate for the programming packages.

Are subscribers getting a discount for the missing channels?

Yes, YouTube TV has provided a $15 temporary credit to all subscribers’ accounts. This reflects the value the service attributes to the missing Disney-owned networks.

Has this happened with other streaming services before?

Yes, carriage disputes are common in the television industry. Similar temporary blackouts have occurred between providers like Dish Network, DirecTV, and various content owners over the years.

Trusted Sources

Reuters, Associated Press