ESPN and YouTube TV.
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Just a month after reaching an agreement with NBCUniversal to avoid a network outage, YouTube TV is facing another possible blackout. disney.
Disney announced Thursday that it will begin sending public messages to YouTube TV subscribers warning customers that they will be removed from the service if its networks, including ABC and ESPN, cannot agree to a new distribution deal that expires at 11:59 p.m. ET on Oct. 30.
“This is the latest example of Google abusing its position at the expense of its own customers,” a Disney spokesperson said in a statement. “If we don’t reach a fair agreement soon, YouTube TV customers will lose access to all major programming, including ESPN and ABC, as well as the NFL, college football, NBA and NHL seasons.”
Disney began making public announcements on YouTube TV at 5pm ET.
Like NBCUniversal, YouTube TV is also seeking higher prices for Disney programming, according to people familiar with the discussions. YouTube TV has about 10 million subscribers, and given its size, officials said they were hoping for more favorable terms.
“We have worked in good faith to negotiate a deal with Disney that pays them fairly for content on YouTube TV,” a spokesperson for the service said in a statement. “Unfortunately, Disney is proposing expensive economic terms that will increase prices for YouTube TV customers and reduce customer choice, while benefiting Disney’s own live TV products such as Hulu + Live TV and soon Fubo. Without an agreement, we will have to remove Disney content from YouTube TV and provide subscribers with a $20 credit if it is unavailable for an extended period of time.”
YouTube TV and NBCUniversal first agreed to a temporary extension to avoid power outages, then finalized the deal a few days later.
Two years ago, Disney struck an unusual distribution deal with Charter, the largest pay-TV provider in the U.S. by subscribers, giving some Charter subscribers access to Disney+, Hulu and ESPN+ at no additional cost. Disney is willing to offer YouTube TV the same terms as its charter deal, two people familiar with the matter said.
YouTube TV is seeking to bring back Disney’s streaming content, allowing customers to watch shows on Disney+, Hulu and ESPN+ without leaving the YouTube platform, according to people familiar with the negotiations. YouTube TV also requested this in negotiations with NBCUniversal, but was denied. Similarly, Disney has no plans to respond to the request, according to a person familiar with Disney’s thinking.
The conflict between Disney and YouTube has added an additional element of conflict. YouTube fired former Disney distribution chief Justin Connolly earlier this year, prompting Disney to file a breach of contract lawsuit. Mr. Connolly has recused himself from those discussions, according to people familiar with the matter.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. With Comcast’s planned Versant spinoff, Versant will become CNBC’s new parent company.
