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Arch Manning #16 of the Texas Longhorns scrambles with the ball during the third quarter against the Clemson Tigers in the Playoff First Round Game at Darrell K Royal-Texas Memorial Stadium on Dec. 21, 2024 in Austin, Texas.
Jack Gorman | Getty Images
Google (GOOGL) announced Wednesday it has secured a short-term extension with Fox Corporation (FOXA), averting a blackout of Fox channels on its YouTube TV streaming platform. The eleventh-hour agreement prevents immediate disruption to millions of subscribers, particularly ahead of a highly anticipated weekend of sports programming.
While the tech giant breathed a collective sigh of relief, the precise duration of the extension remains undisclosed. The stakes are high, impacting not just viewers but also the flow of significant advertising revenue.
“We have reached a short-term extension with Fox to prevent disruption to YouTube TV subscribers as we continue to work on a new agreement,” Google stated in a blog post. “We are committed to advocating on behalf of our subscribers as we work toward a fair deal and will keep you updated on our progress.”
At the heart of the dispute lies the contentious issue of content licensing fees. Google claims Fox is demanding exorbitant payments, far exceeding rates paid to other networks with comparable offerings. YouTube TV, boasting approximately 9.4 million subscribers, stood to lose access to key programming, including live NFL and college football games, potentially driving users to rival services.
This standoff arrived at a critical juncture. College football fans are gearing up for a marquee week one matchup between top-ranked Texas and reigning national champion, third-ranked Ohio State — a game broadcast on Fox. The looming deadline put that broadcast in jeopardy for YouTube TV subscribers.
FCC Commissioner Brendan Carr weighed in on the impasse, urging a swift resolution. “Google removing Fox channels from YouTube TV would be a terrible outcome,” he tweeted. “Millions of Americans are relying on YouTube to resolve this dispute so they can keep watching the news and sports they want — including this week’s Big Game: Texas @ Ohio State. Get a deal done Google!”
The Texas-Ohio State game carries extra weight, marking Arch Manning’s anticipated debut as starting quarterback for the Longhorns. A blackout would have deprived many fans of witnessing this pivotal moment in his career.
With the NFL season kicking off soon, offering a constant flow of live games on Fox, the pressure was building on both sides to reach a deal. In addition to football, Fox also broadcasts Major League Baseball games, including playoffs and the World Series.
One potential beneficiary of a breakdown in negotiations could be Fox’s own standalone streaming service, Fox One, which recently launched at $19.99 per month or $199.99 annually. This gives users a direct offering of Fox content separate from YouTube TV.
YouTube TV presently charges subscribers $82.99 monthly for over 100 live channels and unlimited cloud DVR storage. Google has stated it will proactively credit accounts $10 where prolonged Fox channel disruption takes place. YouTube has recently surpassed streaming titan Netflix in viewer engagement, a reflection of how critical it is, in the current environment, to continue providing valuable content to the user base.
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