YouTube TV warns it could lose all Disney-owned channels amid contract dispute

Getty Pictures | Chris McGrath

YouTube TV yesterday warned that it may lose all Disney-owned channels after Friday due to a contract dispute and mentioned it would briefly scale back its value by $15 a month if that occurs.

“We’re now in negotiations with Disney to proceed distributing their content material on YouTube TV so you’ll be able to proceed watching every thing out of your favourite groups on ESPN to The Bachelor to Good Morning America. Our deal expires on Friday, December 17, and we have not been capable of attain an equitable settlement but, so we wished to present you an early heads up so that you could perceive your selections,” the Google-owned YouTube wrote in a weblog put up.

“[I]f we’re unable to succeed in a deal by Friday, the Disney-owned channels will not be obtainable on YouTube TV and we’ll lower our month-to-month value by $15, from $64.99 to $49.99 (whereas this content material stays off our platform),” the weblog put up mentioned. YouTube famous that customers can pause or cancel their YouTube TV subscriptions at any time and subscribe to the Disney Bundle for $13.99 a month.

YouTube’s assertion that it desires “equitable” phrases signifies that it’s looking for a most-favored-nation (MFN) clause from Disney. “Our ask to Disney, as with all our companions, is to deal with YouTube TV like every other TV supplier—by providing us the identical charges that providers of an identical dimension pay, throughout Disney’s channels for so long as we supply them. If Disney provides us equitable phrases, we’ll renew our settlement with them,” YouTube wrote.

When contacted by Ars, Disney mentioned that the contract is scheduled to run out on Friday at 11:59 pm ET and covers “the ABC Owned Tv Stations, the ESPN networks, the Disney channels, Freeform, the FX networks, and the Nationwide Geographic channels.” Disney expressed confidence that the businesses can keep away from a blackout:

Disney Media and Leisure Distribution has a extremely profitable monitor document of negotiating such agreements with suppliers of all sorts and sizes throughout the nation and is dedicated to working with Google to succeed in a good, market-based settlement. We’re optimistic that we are able to attain a deal and proceed to offer their YouTube TV clients with our reside sporting occasions and information protection, plus youngsters, household, and normal leisure programming.

YouTube settled disputes with NBC and Roku

YouTube’s demand for an MFN clause was additionally one of many sticking factors in its current dispute with the Comcast-owned NBCUniversal. In that case, the businesses needed to conform to a brief extension to keep away from a blackout when the unique contract expired. Someday later, they introduced a multiyear deal to maintain NBC on YouTube TV.

The YouTube/NBC negotiations had been contentious partly as a result of NBCUniversal requested YouTube TV to bundle Peacock, the NBC streaming service that has apparently didn’t get many paying subscribers. A Disney spokesperson informed Ars that Disney didn’t ask YouTube TV to bundle Disney+.

A current dispute between Roku and Google resulted within the YouTube TV app being pulled from the Roku Channel Retailer. Google and Roku reached a deal to finish that deadlock final week, at some point earlier than the common YouTube app would have been faraway from the Roku retailer.

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