Disney pulls channels from YouTube TV over fee dispute
YouTube TV subscribers have lost access to ESPN, ABC and other Disney channels as the two companies struggle to negotiate a licensing deal.
Disney said the online pay TV platform, which is owned by tech giant Google and available only in the United States, had refused to pay fair rates for content, which also includes National Geographic and the Disney Channel.
In its own statement, YouTube TV said Disney’s proposed terms “disadvantage our members while benefiting Disney’s own live television products.”
After tense negotiations, the channels disappeared from YouTube TV shortly before midnight on Thursday – the deadline to reach a new agreement. The outage affects around 10 million subscribers.
If Disney Channels remain suspended for an “extended period of time,” YouTube TV said it will offer its subscribers a $20 credit.
Disney-owned YouTube and Hulu are among the largest online television platforms in the United States.
Their confrontation follows equally contentious discussions this year between YouTube and other media companies, which had also threatened to limit shows available to YouTube TV subscribers.
Google struck a last-minute deal with Comcast-owned NBCUniversal earlier this month to keep shows like “Sunday Night Football” on YouTube TV. It also struck deals with Paramount and Fox in recent months.
In separate statements, Google and Disney said they were working on a resolution to restore Disney content to YouTube TV.
Companies nevertheless remain divided on prices.
“With a market capitalization of $3 trillion, Google is using its dominant market position to eliminate competition and undermine industry standard terms that we have successfully negotiated with all other retailers,” a Disney spokesperson said in a statement.
But YouTube said in a statement that Disney was proposing “costly economic terms” that would result in higher prices for YouTube TV customers and limit their content options, thereby benefiting Disney’s own live TV offerings like Hulu+ Live TV.
