Only a month after agreeing with NBCUniversal not to terminate its networks, YouTube TV is facing another possible blackout, this time with Disney.
Disney announced on Thursday that it will commence providing public messages to YouTube TV subscribers to caution customers that its networks, such as ABC and ESPN, will be removed from the service unless the two businesses agree to a new distribution deal, which expires October 30 at 11.59 p.m. ET.
In a statement, a Disney spokesperson stated that “This is the latest example of Google exploiting its position at the expense of its own customers. If we don’t reach a fair deal soon, YouTube TV customers will lose access to ESPN and ABC, and all our marquee programming — including the NFL, college football, NBA and NHL seasons — and so much more.”
Meanwhile, Disney started posting public announcements on YouTube TV at 5 p.m. ET.
Similar to NBCUniversal, YouTube TV is demanding more favorable terms to broadcast the programming of Disney, as it is alleged by an individual privy to the negotiations.
The people familiar with the matter reported that YouTube TV has approximately 10 million subscribers and desires more conducive terms considering their size.
In a statement, a spokesperson of the service added that “We’ve been working in good faith to negotiate a deal with Disney that pays them fairly for their content on YouTube TV. Unfortunately, Disney is proposing costly economic terms that would raise prices on YouTube TV customers and give our customers fewer choices, while benefiting Disney’s own live TV products – like Hulu + Live TV and, soon, Fubo. Without an agreement, we’ll have to remove Disney’s content from YouTube TV and if it remains unavailable for an extended period of time, we will offer subscribers a $20 credit.”
YouTube TV and NBCUniversal initially agreed on a temporary extension to prevent a blackout and signed a completed agreement a few days later.
Disney also entered a strange deal with the largest pay TV company in the United States in terms of subscribers, and Charter, about two years ago, which allowed some subscribers to the company to access Disney+ and Hulu, and ESPN+ at no additional cost.
Two of the individuals said that Disney was prepared to extend the identical conditions to YouTube TV as to the Charter deal.
A person familiar with the negotiations reported that YouTube TV is once more seeking to consume the streaming content of Disney, allowing consumers to access the content on Disney+, Hulu, and ESPN+ without leaving the platform.
YouTube TV has also requested this as part of their negotiations with NBCUniversal and was denied. As per the people familiar with the company’s observation, Disney is not going to agree to this request.
The dispute between Disney and YouTube has a new dimension of rivalry.
Former Disney Distribution Executive Justin Connolly was also hired by YouTube at the beginning of the year, which led Disney to initiate a breach of contract lawsuit. It was reported that Connolly has recused himself from these discussions.
