On Friday, Google’s YouTube and Walt Disney stated that they had reached an agreement to restore Disney-owned networks that include ABC, ESPN, FX and National Geographic to YouTube TV. As Reuters reports, a fee dispute left millions of subscribers without access to U.S. Election Day programming and major live sports events for weeks.
What Was the Dispute About?
The dispute, centered around carriage fees, or the per-subscriber rates distributors pay to carry broadcast and cable networks, had caused Disney’s channels to go dark on October 30 on one of the largest pay-TV services in the U.S.
Walt Disney did not immediately respond to a query about the financial terms of the deal. YouTube said it was not disclosing the deal’s terms. However, CNBC reported last week that Disney sought rates comparable to those paid by major distributors, including around $10 a subscriber per month for ESPN.
YouTube TV’s rapid growth as a pay-TV platform, combined with Google’s vast financial resources, gives it greater negotiating leverage with media companies and allows it to operate with less short-term financial pressure than traditional providers. The service has been locked in negotiations and carriage disputes with major media firms that were threatening to pull their networks from the platform.
Prospects of a prolonged fight over the distribution of Walt Disney’s television networks had worried investors about the outlook for its already declining TV business. The Walt Disney company missed quarterly revenue expectations as its cable TV weakness overshadowed strong growth in the company’s streaming and parks businesses.
Sports Programming was Among the Key Casualties
Sports programming was among the casualties of the dispute, with YouTube TV users unable to watch the November 3 “Monday Night Football” game between the Arizona Cardinals and Dallas Cowboys.Disney asked YouTube TV to restore ABC for U.S. Election Day coverage on November 4, citing public interest, but the streaming service rejected the proposal, saying a one-day return would confuse customers.
YouTube said last month Disney used the “threat of a blackout” as a negotiating tactic to force deal terms that would raise prices for its customers. Walt Disney said YouTube TV was “demanding preferential treatment with lower rates and rejecting terms accepted by other partners, including Disney’s own services like Hulu + Live TV and Fubo.”
All of the affected Disney networks included FX, National Geographic, Nat Geo Wild, Disney Channel, and ABC News Live.
What’s in the Deal?
As NBC News reports, Disney said the deal is a “multi-year distribution agreement” with YouTube TV. Disney CEO Bob Iger said on Thursday his company had proposed a deal “equal to or better than what other large distributors have already agreed to,” referring to talks with YouTube TV over the dispute.
“It recognizes the tremendous value of Disney’s programming and provides YouTube TV subscribers with more flexibility and choice,” Disney Entertainment co-Chairmen Alan Bergman and Dana Walden and ESPN Chairman Jimmy Pitaro said in a news release.
The new deal allows Disney+ and Hulu bundle content to be shared on YouTube TV, Disney said.
In other good news for subscribers, ESPN’s full line-up of sports, including content from ESPN Unlimited, will now be available to base-plan subscribers at no additional cost by the end of 2026, according to YouTube. “We are pleased that our networks have been restored in time for fans to enjoy the many great programming options this weekend, including college football,” they said in the statement.
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