YouTube TV loses Disney channels, cuts price

**Google and Disney End Standoff, Restore Channels to YouTube TV After Weekend Blackout**

NEW YORK – YouTube TV subscribers regained access to Disney-owned channels Sunday morning, December 19, following a two-day blackout stemming from a dispute over content distribution fees between Google and The Walt Disney Company. The channels, which include ABC, ESPN, FX, Freeform, National Geographic, and the Disney Channel, along with various regional sports networks, had been unavailable since late Friday, December 17.

The brief but impactful disruption saw YouTube TV, Google’s live TV streaming service, immediately drop its monthly subscription price by $15, reducing it from $64.99 to $49.99. The company had stated this lower price would remain in effect as long as the Disney channels were off the platform. Upon the resolution, the monthly price for YouTube TV reverted to its previous $64.99.

“We are pleased to announce that we’ve reached a deal with Disney to return their content to YouTube TV,” Google said in an update to its blog post detailing the dispute. “We appreciate your patience and understanding during this period. We’ll be in touch with an update about the previous price adjustment via email soon.”

Disney also confirmed the new agreement, stating, “We are pleased to announce that after a brief disruption, we have reached a new distribution agreement with Google’s YouTube TV for continued carriage of our portfolio of networks. We appreciate YouTube TV’s collaboration to reach an agreement that reflects the market-based terms for our valuable content.”

The standoff, a common occurrence in the evolving landscape of television distribution, highlighted the growing tensions between content creators and streaming platforms over retransmission fees – the payments broadcasters charge cable and satellite providers (and increasingly, streaming TV services) for carrying their signals.

Prior to the resolution, both companies had expressed disappointment and laid blame. YouTube TV had claimed Disney was unwilling to agree to “equitable terms” and that they had sought a “fair deal.” Disney, on the other side, asserted that YouTube TV had “declined our fair and reasonable offer” and would not agree to “market-based terms.” Both indicated a desire to continue discussions, which ultimately led to the swift resolution.

For subscribers, the blackout meant a temporary loss of popular programming, including major college football games on ESPN and local ABC affiliates, just ahead of the holiday season. Many took to social media to voice their frustration, navigating alternatives like Disney’s direct-to-consumer streaming services – Disney+, Hulu, and ESPN+ – which were unaffected by the YouTube TV dispute.

This incident follows a trend of content disputes in the streaming and traditional pay-TV sectors. Earlier in 2021, Roku engaged in a similar standoff with Google over YouTube TV and YouTube apps, and Dish Network has had numerous highly publicized carriage disputes with local broadcasters and other content providers. These battles underscore the increasing leverage content owners wield in a fragmented media landscape and the constant pressure on distributors to manage rising programming costs without alienating subscribers.

While specific financial terms of the new YouTube TV-Disney agreement were not disclosed, such deals often involve multi-year contracts and incremental increases in carriage fees. The rapid resolution suggests both parties recognized the significant impact on consumers and the potential for long-term subscriber churn, particularly for a live TV streaming service like YouTube TV that relies heavily on a comprehensive channel lineup.