An estimated 10 million YouTube TV subscribers have lost access to Disney-owned channels after contract-renewal talks collapsed.
Disney stated that the online pay-TV platform, which is available only in the US, had refused to pay fair rates for the content. These Disney-owned channels include ESPN, ABC, National Geographic, and the Disney Channel.
On the other hand, YouTube said Disney’s proposed terms would force it to raise prices. It also noted that removing Disney content from YouTube TV would benefit Disney’s own streaming services, which include Disney+, Hulu, and a new ESPN app.
YouTube TV said it would offer subscribers a $20 credit if the Disney channels are suspended for an extended period of time.
Recently, YouTube TV has held challenging talks about contract renewal with other media organisations. Univision’s channels have been dark on YouTube TV for nearly a month. NBCUniversal and Fox reached agreements with YouTube to avoid a similar interruption.
“Unfortunately, Google’s YouTube TV has chosen to deny [its] subscribers the content they value most by refusing to pay fair rates for our channels, including ESPN and ABC,” a Disney spokesperson said.
“With a $3tn 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.”
A YouTube TV spokesperson said: “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. 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.”
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