NEW YORK:
The standoff between YouTube TV and Disney over carriage fees continued over the weekend, with the two sides expressing a willingness to reach a deal but not resolving key financial differences that have left millions of subscribers without access to popular channels including ABC and ESPN.
The blackout began late last Thursday after negotiations between the two companies failed to reach a new licensing deal. Disney confirmed in a memo to employees on Friday that talks with Google, YouTube’s parent company, were ongoing but had yet to yield results.
“We’re heading into another packed sports weekend without a deal,” wrote Disney Entertainment co-chairmen Dana Walden and Alan Bergman, along with ESPN president Jimmy Pitaro.
Disney said it had initially offered YouTube TV a new deal that would have cost the streamer less overall than the recently expired license. The company also claimed to have proposed flexible, customized packages that would allow YouTube TV subscribers to choose from sports, entertainment and family programming.
“YouTube TV continues to insist on receiving preferential terms that are below market and has made few concessions,” Disney executives said in the internal memo, noting that the company negotiated in good faith and offered prices in line with what other major distributors had accepted since last summer.
In response, YouTube TV denied Disney’s characterization of the talks, saying it was not seeking lower prices than other distributors but rather parity with existing industry deals.
“Our team is prepared to strike a fair deal consistent with their agreements with other distributors, and we encourage Disney to come to the table and do what’s best for our mutual customers,” YouTube said in a statement to Reuters.
The Google-owned service also accused Disney of misrepresenting facts and “publicly trading through its paid talent,” adding that Disney demands higher prices than Charter and DirecTV pay for the same ABC networks.
YouTube said its proposal to bring back ABC and ESPN earlier this week was in response to Disney’s request to have ABC available for Election Day coverage.
The difference centers on carriage fees — the per-subscriber fees that distributors like YouTube TV pay media companies in exchange for carrying their broadcast and cable networks.
These fees have become a flashpoint across the media industry as streaming platforms and traditional broadcasters scramble for revenue in a rapidly changing television landscape.
Industry analysts say such clashes are becoming more common as streaming services try to keep subscription costs competitive while media companies seek to maintain revenue from shrinking cable.
For Disney, the blackout comes at a sensitive time, with major sporting events and political coverage at stake, potentially hurting advertising revenue and viewership numbers.
For YouTube TV, one of the largest pay-TV distributors in the US with more than eight million subscribers, the absence of ABC and ESPN — two of the most-watched networks on its platform — could test customer loyalty as sports fans look for alternatives to live coverage.
Despite the impasse, both companies have reiterated their commitment to restore services. Disney said it would continue discussions to find “common ground”, while YouTube TV argued its offer remained fair and consistent with the wider market. Neither company provided a timeline for when a deal could be reached, leaving subscribers unsure of when their favorite Disney-owned channels will return to the platform.
For now, the blackout continues into another crucial weekend for sports and entertainment, with both sides holding firm as pressure mounts from both viewers and advertisers.
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