Disney content, encompassing channels like ABC and ESPN, has vanished from Google’s YouTube TV after the media titan and the streaming platform failed to reach an agreement on a new distribution deal.
“Despite our best efforts, we have not been able to reach a fair deal, and starting today, Disney programming will not be available on YouTube TV,” YouTube TV stated.
This impasse results in the removal of over 20 channels, including ESPN and affiliated sports networks, ABC, FX, NatGeo, Disney Channel, and Freeform. YouTube TV has indicated a $20 credit for users should the content disruption extend for a significant duration.
Disney responded sharply, asserting that “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 memo circulated among Disney employees from Disney Entertainment Co-Chairs Dana Walden and Alan Bergman and ESPN Chairman Jimmy Pitaro accused YouTube TV of not only failing to strike a deal but also “deleting all [Disney] previously recorded shows and events from their subscribers’ libraries.”
“Their actions make clear how little regard they have for their customers and are consistent with an attitude which has been prevalent throughout our negotiations — YouTube TV and its owner, Google, are not interested in achieving a fair deal with us,” the memo stated. “Instead, they want to use their power and extraordinary resources to eliminate competition and devalue the very content that helped them build their service.”
Negotiations between the two entities continued until the existing contract’s expiration on October 30 at 11:59 p.m. ET. The breakdown jeopardizes YouTube TV subscribers’ access to key programming, including college football and “Monday Night Football.”
Last week, Disney had already signaled the potential for a content blackout.
YouTube, in a statement posted on its official blog, countered, arguing that Disney had “used the threat of a blackout on YouTube TV as a negotiating tactic to force deal terms that would raise prices on our customers,” and that Disney was now executing on that threat.
“We will not agree to terms that disadvantage our members while benefiting Disney’s own live TV products,” YouTube TV stated, referencing Disney’s competitive offerings like Hulu + Live TV and Fubo.
“We know how disruptive it is to lose channels you enjoy, and we’re committed to continuing to work with Disney to reach an agreement,” YouTube insisted.
The core of the dispute revolves around the fees YouTube TV pays to broadcasters for streaming rights, a recurring point of friction during contract renewals. This is not the first time YouTube TV has faced such a challenge. Just last month, NBCUniversal content was on the brink of removal before a last-minute agreement averted the loss of popular shows like “Sunday Night Football” and “America’s Got Talent.”
CNBC reported previously that Disney was open to offering YouTube TV a distribution agreement that included access to Disney+, Hulu, and ESPN+ for some subscribers without additional charges, similar to an arrangement struck with Charter, the largest U.S. pay-TV provider.
However, a key sticking point was YouTube’s request to integrate Disney’s streaming content directly into the YouTube TV platform, allowing subscribers to access content on Disney+, Hulu, and ESPN+ without leaving the YouTube TV environment, according to sources familiar with the negotiations. Disney reportedly rejected this proposal, signaling a firm stance against adding its streaming services to YouTube Primetime Channels due to concerns about cannibalization and brand control.
This conflict between Disney and YouTube also features a unique element, with YouTube’s earlier hiring of former Disney distribution executive Justin Connolly, which led to a breach-of-contract lawsuit filed by Disney. While Connolly reportedly recused himself from the negotiations and the lawsuit has been settled, the incident underscores the competitive intensity and the high stakes involved in distribution deals in the evolving media landscape.
YouTube’s dominance in the U.S. media landscape is undeniable. Nielsen data indicates that YouTube commands over 13% of total TV watch-time, positioning it as the leading U.S. media distributor by audience engagement. Furthermore, MoffettNathanson analysts project that YouTube is on track to surpass Disney in revenue by 2025, solidifying its position as a media powerhouse.
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