Disney Warns YouTube TV Users of Possible Blackout Ahead of Deadline

Burbank, California — Disney has announced that its networks, including ABC and ESPN, could go dark for YouTube TV subscribers if the two companies fail to reach a new distribution agreement by midnight on October 30. This warning comes just weeks after YouTube TV avoided a blackout with NBCUniversal.

Disney began airing public messages on its channels to alert viewers, stating that YouTube TV customers would lose access to major programming, including NFL games, if a fair deal is not reached. A Disney spokesperson accused Google of using its dominant market position to negotiate lower fees at the expense of customers.

YouTube TV, which has approximately 10 million subscribers, is seeking better rates for Disney’s content. The service has argued that Disney’s proposed terms would unnecessarily increase prices for users and limit their choices. In response to this situation, YouTube TV says it will offer a $20 credit to subscribers if Disney’s channels are unavailable for an extended period.

The current agreement covers channels including ABC, ESPN, FX, and Freeform. Disney’s push for a new deal follows its previous tough negotiations with cable operators like Charter and DirecTV. Disney’s spokesperson emphasized the importance of fair rates, stating that they invest significantly in their content and expect their partners to acknowledge that value.

In recent negotiations, YouTube TV has expressed interest in promoting Disney’s streaming services like Disney+ on its platform, but Disney has declined these requests. Interestingly, the situation is complicated by the fact that Justin Connolly, a former Disney executive who was brought on by YouTube TV earlier this year, has faced legal challenges from Disney regarding his employment.

The combination of market dynamics, major sporting events, and ongoing legal disputes has heightened tensions between these two major players in the media landscape. As the deadline approaches, both companies appear to be digging in for a tough negotiation.