YouTube TV users will lose access to ESPN, ABC, and other Disney-related channels following a breakdown in contract negotiations on Thursday night.
The disruption began Thursday evening, affecting broadcasts of popular shows like Sports Center with Scott Van Pelt and Grey’s Anatomy. This incident is considered one of the most significant television outages in recent times, impacting over 10 million subscribers.
The conflict between the two media giants has been ongoing for weeks, focusing on fees for Disney Channels, including FX, Disney Junior, and National Geographic. YouTube TV, viewed as one of the largest pay-TV services in the U.S., saw tensions rise as the deadline for a new contract came and went, with Disney being hesitant to agree to the price proposals.
“Content producers, notably Disney, are pushing for higher fees to cover their rising sports programming costs, which include contracts with the NFL and NBA,” the report noted.
A representative from YouTube acknowledged the frustration this situation caused for customers, even offering a $20 credit as a kind of apology for the extended outages.
“We know this outcome is disappointing for our users,” the statement continued. “We’re urging Disney to negotiate in good faith to restore their networks to YouTube TV.”
Disney, however, has claimed that YouTube TV is insisting on rates below market value.
“It’s unfortunate that Google’s YouTube TV has opted to withhold favored content from its subscribers by refusing to pay a reasonable price for channels like ESPN and ABC,” Disney stated. “If a new agreement isn’t reached, our programming— featuring major live sports, including the NFL, NBA, and college football— will no longer be available. Google, with its huge market value, is leveraging its position to stifle competition and undermine the standard terms that have been successfully negotiated with other providers.”
