Disney Faces Potential YouTube TV Blackout for ESPN, Other Networks

Just weeks after averting a potential blackout with NBCUniversal, YouTube TV faces another carriage dispute that threatens to remove key Disney-owned networks. The clock is ticking down to October 30th at 11:59 p.m. ET, the deadline for a new distribution agreement between Disney and YouTube TV. Failure to reach a deal would result in the removal of channels like ABC and ESPN from the streaming platform.

Disney initiated a public messaging campaign on Thursday, alerting YouTube TV subscribers to the potential disruption. “This is the latest example of Google exploiting its position at the expense of their own customers,” claimed a Disney spokesperson in a released statement. “If we don’t reach a fair deal soon, YouTube TV customers will lose access to ESPN and ABC, and all our marquee programming — including the NFL, college football, NBA and NHL seasons — and so much more.”

Sources familiar with the negotiation indicate that YouTube TV is seeking more favorable rates for Disney’s programming, leveraging its subscriber base of approximately 10 million users. The streaming service argues that its scale warrants more advantageous terms.

“We’ve been working in good faith to negotiate a deal with Disney that pays them fairly for their content on YouTube TV,” a YouTube TV spokesperson responded in a statement. “Unfortunately, Disney is proposing costly economic terms that would raise prices on YouTube TV customers and give our customers fewer choices, while benefiting Disney’s own live TV products – like Hulu + Live TV and, soon, Fubo. Without an agreement, we’ll have to remove Disney’s content from YouTube TV and if it remains unavailable for an extended period of time, we will offer subscribers a $20 credit.”

Two years ago, Disney struck a novel distribution agreement with Charter Communications, granting some Charter subscribers access to Disney+, Hulu, and ESPN+ at no additional cost. Disney has reportedly offered YouTube TV a similar framework mirroring the Charter deal.

However, a sticking point in negotiations appears to be YouTube TV’s request to integrate Disney’s streaming content (Disney+, Hulu, and ESPN+) directly into its platform, allowing users to access content without leaving the YouTube TV interface. This echoes a similar request made – and ultimately rejected – during recent negotiations with NBCUniversal. Disney sources indicate that they are unlikely to concede to this demand.

This standoff also brings to the surface the undercurrent of past issues. Earlier in the year, YouTube poached former Disney distribution executive Justin Connolly, triggering a breach-of-contract lawsuit from Disney. While Connolly has recused himself from the current negotiations, the history contributes another layer of complexity to the already tense discussions.

The outcome of these negotiations will have significant implications. For YouTube TV, losing Disney’s content would represent a major blow to its programming lineup and potentially drive subscribers to rival streaming services. For Disney, a failure to reach an agreement could impact its distribution strategy and revenue streams, especially as it aggressively pushes its own direct-to-consumer streaming platforms.

The dispute underscores the growing tensions between traditional media giants and streaming platforms as the landscape continues to evolve. Both sides are maneuvering for leverage in a fight for viewers and subscription dollars.