Subscribers to YouTube TV have lost access to ESPN, ABC, and other Disney channels as the two companies struggle to negotiate a licensing deal.
Disney stated that the online pay-TV platform, owned by Google and available only in the US, has refused to pay fair rates for the content, which also includes National Geographic and the Disney channel.
YouTube TV countered by claiming that Disney's proposed terms disadvantage our members while benefiting Disney's own live TV products. The blackout occurred just before midnight on Thursday, the deadline for reaching a new agreement, impacting roughly 10 million subscribers.
In an effort to mitigate subscriber dissatisfaction, YouTube TV announced that if Disney channels remain suspended for an extended period, a $20 credit would be offered to affected subscribers.
YouTube and Disney-owned Hulu are major players in the online TV landscape in the US. This dispute mirrors similarly contentious negotiations earlier this year, where YouTube faced challenges with other media companies over the availability of shows.
After a successful last-minute deal with Comcast-owned NBCUniversal to keep shows like Sunday Night Football on its platform, Google continues to seek resolutions with Disney. However, both organizations remain divided over fee structures.
A Disney spokesperson criticized Google's market dominance, stating, 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. Conversely, YouTube contended that the terms proposed by Disney would lead to increased prices for customers while limiting their content options.
Both companies have expressed a desire to resolve the situation and restore Disney's content to YouTube TV, but tensions over licensing fees persist.
