YouTube TV accused Disney of leveraging the threat of a blackout to secure higher fees that the streaming service argued would ultimately raise monthly prices for its members. “We will not agree to terms that disadvantage our members while benefiting Disney’s own live TV products,” the company wrote, referring to services such as Hulu + Live TV and Fubo, in which Disney holds equity stakes.
If the standoff continues for an extended period, YouTube TV said it will issue a $20 credit to affected subscribers. The platform, which last increased its base subscription price to $72.99 per month earlier this year, pays programmers for the right to retransmit their channels and has engaged in several high-profile renewal battles in recent months.
In September, YouTube TV and NBCUniversal came close to a similar interruption before agreeing to a short extension and ultimately announcing a multi-year accord that kept NBC, USA Network and other properties on the service. The latest dispute underscores the broader tension between streaming distributors that market lower prices and content owners seeking to preserve affiliate fee revenue as traditional pay-TV subscriptions decline.
The impasse with Disney carries an additional wrinkle. Earlier this year, YouTube hired Justin Connolly, a former senior Disney distribution executive. Disney responded by filing a breach-of-contract lawsuit, alleging Connolly’s move violated a non-compete clause. People familiar with the situation told CNBC that Connolly has recused himself from the current talks.
YouTube, owned by Alphabet’s Google, holds a significant position in the U.S. media ecosystem. According to July data from Nielsen’s The Gauge report, the platform accounted for more than 13 percent of total television watch time, the highest share among individual distributors. Research firm MoffettNathanson projected earlier this year that YouTube could surpass Disney in total revenue by 2025, reflecting the rapid growth of digital advertising and subscription services tied to the video giant.
The timing of the blackout arrives as Disney evaluates strategic options for its own linear networks. Chief Executive Bob Iger said in August that the company is “considering the possibilities” for ABC and its cable properties amid long-term shifts in consumer viewing habits. Disney has also explored bringing live sports from ESPN directly to consumers via a full direct-to-consumer service.
YouTube TV launched in 2017 and has more than 5 million subscribers, making it the largest U.S. internet-delivered live television bundle. The service offers unlimited DVR storage, multiple household streams and access to add-on packages such as NFL Sunday Ticket, which transferred from DirecTV to YouTube this season.
For viewers, the removal means live broadcasts of college football, NBA and NHL games carried on ESPN networks will no longer be available through YouTube TV. Local affiliates owned by Disney in major markets, including WABC-TV in New York and KABC-TV in Los Angeles, are also dark. Subscribers seeking those channels must turn to another pay-TV option, use Disney’s proprietary streaming apps with a separate provider login or rely on free, over-the-air antennas for ABC programming.
Contract disputes between programmers and distributors are common, but blackouts that extend beyond a few days can drive customers to switch services. YouTube TV indicated in its blog post that it remains “committed to continuing to work with Disney to reach an agreement,” yet did not specify whether formal negotiations were still active after the deadline passed.
Traditional carriage agreements typically span several years and outline per-subscriber fees, on-demand rights, authentication provisions and marketing commitments. Rising sports rights costs, coupled with accelerating cord-cutting, have intensified negotiations as distributors weigh the impact of higher fees on consumer pricing against the value of retaining marquee content.
Until a resolution is reached, YouTube TV’s channel lineup will exclude Disney’s portfolio, reducing the base package to roughly 80 networks. Subscribers will still receive non-Disney sports content from broadcasters such as CBS, Fox and NBC, as well as league-specific channels like NBA TV and MLB Network.
Industry analysts will monitor whether the blackout leads to a subscriber dip for YouTube TV or influences Disney’s broader strategy for its linear assets. The outcome could shape future bargaining dynamics as digital platforms and legacy media companies compete for viewer attention and subscription revenue.
Crédito da imagem: NurPhoto
