YouTube TV subscribers have lost access to ESPN, ABC, and other Disney-owned channels as Disney and Google, YouTube TV’s parent company, remain at odds over licensing agreement terms.
Disney asserts that YouTube TV, a streaming platform available exclusively in the U.S., has refused to agree to fair market rates for its content, including channels such as National Geographic and the Disney Channel.
In a counter-statement, YouTube TV stated that Disney’s proposed terms “disadvantage our members while benefiting Disney’s own live TV products”.
Following strained negotiations, the channels were removed from YouTube TV just before the Thursday midnight deadline. The service disruption impacts an estimated 10 million subscribers.
YouTube TV has indicated that if the suspension of Disney channels persists for an extended period, it will offer subscribers a $20 credit.
YouTube and Disney-owned Hulu are among the leading online television platforms in the United States.
This impasse follows similar contentious negotiations earlier this year between YouTube and other media conglomerates, raising the specter of restricted content availability for YouTube TV subscribers.
Earlier this month, Google reached a last-minute agreement with Comcast-owned NBCUniversal to preserve access to programs such as “Sunday Night Football” on YouTube TV. Agreements have also been secured with Paramount and Fox in recent months.
Both Google and Disney have issued separate statements affirming their commitment to finding a resolution that will restore Disney content to YouTube TV.
However, the companies remain divided on the issue of fees.
A Disney spokesperson stated, “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.”
In its statement, YouTube countered that Disney’s proposal involved “costly economic terms” that would drive up prices for YouTube TV customers and limit their content choices, while favoring Disney’s own live TV offerings like Hulu+ Live TV.
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