More than 10 million YouTube TV customers lost access to ESPN, ABC and other Walt Disney co. channels after contract talks broke down thursday night in one of the largest television blackouts in recent years.
The Disney blackout was set to begin by 9 p.m. Thursday, interrupting “SportsCenter with Scott Van pelt” on ESPN and “9-1-1: Nashville” and “Grey’s Anatomy” on ABC.
The two TV giants have been wrangling for weeks over carriage fees for Disney’s channels, including FX, Disney Jr. and National Geographic. YouTube TV – now one of the largest pay-TV services in the U.S. – has balked at Disney’s price demands, fueling the dispute that spilled beyond Thursday’s deadline for a new deal.
without an agreement, Google-owned YouTube TV no longer had legal rights to distribute Disney’s channels.
“We know this is a frustrating and disappointing outcome for our subscribers,” a YouTube spokesperson said in a statement. “We continue to urge Disney to work with us constructively to reach a fair agreement that restores their networks to YouTube TV.”
Should the outage stretch for “an extended period,” YouTube said it would offer subscribers a $20 credit.
The blackout highlights heightened tensions in the television industry.
Programming companies, including Disney, have sought higher fees for their channels to help offset the increased cost of sports programming, including NFL and NBA contracts.
But pay-TV providers such as YouTube have pushed back, attempting to draw a line as customers grow weary of ever-increasing monthly bills.
They don’t want to lose subscribers to a rival service or have them drop their subscriptions.More than 40 million pay-TV customer homes have cut the cord over the last decade,according to industry data.
Disney becomes the latest TV programmer to allege that Google has been throwing its weight around in contract negotiations.
People close to the Burbank entertainment giant accuse YouTube TV of refusing to pay market rates for disney’s popular channels or accept terms accepted by other pay-TV distributors. Disney has clinched deals with six other pay-TV companies this year, including the nation’s largest channel distributors, Charter Spectrum and Comcast.
“Unfortunately, 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,” Disney said in a statement. “Without a new agreement in place, their subscribers will not have access to our programming, which includes the best lineup in live sports – anchored by the NFL, NBA, and college football, with 13 of the top 25 college teams playing this weekend.With a $3 trillion 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.”
Since August, rupert Murdoch’s Fox Corp., Comcast’s NBCUniversal and Spanish-language broadcaster TelevisaUnivision have all complained that YouTube TV was trying to use its clout to squeeze them for concessions now that YouTube TV has become so popul
Disney and YouTube TV Fail to Reach Agreement, Leading to Channel Blackout
Table of Contents
Disney and YouTube TV have failed to reach a distribution agreement, resulting in a blackout of Disney-owned channels on the streaming service starting Sunday, December 3, 2023. This impacts viewers’ access to channels like ESPN,FX,National geographic,and ABC-owned local stations.
What Channels Are Affected?
the following channels are currently unavailable to YouTube TV subscribers due to the dispute:
* ESPN: Including ESPN2, ESPNEWS, ESPNU, and ESPN Deportes. https://www.espn.com/watch/
* FX: Including FXX and FXM. https://www.fxnetworks.com/
* National Geographic: Including Nat Geo Wild and Nat Geo Mundo. https://www.nationalgeographic.com/
* ABC Owned Stations: This includes local ABC affiliates in major markets like KABC-TV in Los Angeles, impacting access to local news and programming. https://abcnews.go.com/
* Disney Channel
* Freeform
What’s the Reason for the Blackout?
The core of the dispute revolves around the cost of carriage. Disney is seeking increased fees from YouTube TV to distribute its channels, while YouTube TV argues that Disney’s demands are unreasonable and would force them to raise prices for subscribers. Disney stated they offered flexible terms, but YouTube TV was unwilling to agree. https://corporate.disney.com/news/releases/2023/12/disney-statement-youtube-tv/
youtube TV has countered by stating that Disney is demanding excessive fees, and that they are committed to finding a fair resolution. https://blog.youtube/inside-google-a-message-to-our-youtube-tv-members-about-disney/
What Does This mean for Viewers?
The blackout means YouTube TV subscribers will no longer have access to live programming and on-demand content from the affected Disney channels. This includes:
* live Sports: ESPN and ESPN2 are key for live sports coverage, including college football, NBA games, and more. The timing of the blackout impacts college football bowl season and the NBA season.
* News & Local Programming: Loss of ABC-owned stations means viewers will miss local news broadcasts, weather updates, and community events.
* Popular Shows: Viewers will be unable to watch current episodes of popular shows airing on Disney-owned networks.
* Holiday programming: The blackout occurs during the holiday season, potentially impacting access to holiday-themed programming.
YouTube TV’s Response and Subscriber options
YouTube TV has stated it is offering a $7.50 discount to subscribers for as long as the channels remain unavailable. They are also directing customers to Disney+ as a potential alternative for some content. https://blog.youtube/inside-google-a-message-to-our-youtube-tv-members-about-disney/
Subscribers can also explore other live TV streaming services like Hulu + Live TV, Sling TV, or FuboTV, which carry Disney-owned channels.
History of Similar Disputes
This isn’t the first time YouTube TV has faced channel blackouts due to carriage disputes. In the past, the service has experienced similar issues with NBCUniversal and Warner Bros. Finding, highlighting the ongoing tension between streaming services and traditional media companies over distribution costs.
Key Takeaways
* Disney and YouTube TV have failed to reach a new distribution agreement.
* disney-owned channels,including ESPN,FX,National Geographic,and ABC local stations,are no longer available on YouTube TV.
* The dispute centers on the cost of carriage, with Disney seeking higher fees.
* YouTube TV is offering a $7.50 discount to subscribers during the blackout.
* Viewers can explore alternative streaming services to access the affected channels.
This situation is ongoing, and a resolution could be reached at any time. Subscribers are encouraged to stay updated through official announcements from both Disney and YouTube TV.