YouTube TV to drop ESPN, ABC as Walt Disney and Google fail to seal deal: What it means for subscribers

Alphabet’s YouTube TV is set to lose several marquee channels, including ESPN, at the end of this month following its failure to broker a new licensing agreement with the Walt Disney Co.

The $83-per-month cable replacement service is Google’s proposal for a single destination for all home entertainment requirements, but the company has struggled to come to fresh terms with Disney.

The media conglomerate maintains that it supplies some of the biggest draws, particularly with its live sports schedule, which covers the NFL, NBA, and college football, and is therefore seeking what it deems to be fair rates.

“Disney used the threat of a blackout on YouTube TV as a negotiating tactic to force deal terms that would raise prices on our customers,” a YouTube spokesperson said.

“They’re now following through on that threat, suspending their content on YouTube TV,” the spokesperson added.

Disney channels to go dark for YouTube TV subscribers

Should a new agreement not be reached, ESPN, ABC, and other Disney-owned channels will go dark for YouTube TV subscribers across the US from midnight Eastern Time on 31 October. While blackouts of this type are uncommon, the two sides remain engaged in talks, and both have expressed a willingness to come to terms as swiftly as possible. If Disney content remains unavailable for an extended period, YouTube has offered subscribers a $20 credit.

“Google is using its market dominance to eliminate competition and undercut the industry-standard terms we’ve successfully negotiated with every other distributor,” Disney said in a statement.

“We know how frustrating this is for YouTube TV subscribers and remain committed to working toward a resolution,” Disney added.

Meanwhile, the news agency Reuters, citing a source, reported that the removal of Disney’s channels from YouTube TV occurred prior to the contract’s lapsing. YouTube TV issued its statement on X at 11:16 pm ET on Thursday, despite the deal having been originally set to run out only at midnight.

YouTube TV has been embroiled in a series of negotiations this year with firms threatening to withdraw their media networks from the platform. Earlier this month, the company, following a difficult negotiating period, struck a deal with Comcast-owned NBCUniversal to ensure NBC programmes, such as “Sunday Night Football” and “America’s Got Talent”, remained on YouTube TV. The platform also secured similar agreements with Fox and Paramount earlier this year after equally challenging contract discussions.

YouTube TV, which boasts over 10 million subscribers, commented that Disney’s proposed terms would necessitate raising prices for its customers and would ultimately benefit Disney’s own live TV services, such as Hulu Live TV. Disney, conversely, accused YouTube TV of being unwilling to pay fair rates.

“Our contract with Disney has reached its renewal date, and we’ll not agree to terms that disadvantage our members while benefiting Disney’s TV products,” YouTube TV said in a post on social media platform X.