Copyright The Hollywood Reporter
The Walt Disney Co. is rallying the troops as its TV channels go dark on YouTube TV, the streaming multichannel video provider. Disney Entertainment co-chairs Dana Walden and Alan Bergman and ESPN chief Jimmy Pitaro sent a note to staff Friday, thanking them for the work and continued focus, while admonishing YouTube and its parent company Google for the dispute. “As you are no doubt aware, last night YouTube TV pulled our channels from their service, prior to the midnight expiration of our deal, and with no advance notice to their subscribers, or to us,” the three executives wrote. “In doing so, they not only cut off access to our live programming but also deleted all previously recorded shows and events from their subscribers’ libraries. “Their actions make clear how little regard they have for their customers and are consistent with an attitude which has been prevalent throughout our negotiations — YouTube TV and its owner, Google, are not interested in achieving a fair deal with us,” they continued. “Instead, they want to use their power and extraordinary resources to eliminate competition and devalue the very content that helped them build their service.” Disney’s channels, including ABC and ESPN, were pulled from YouTube TV late last night ahead of the midnight deal deadline, leaving subscribers of the vMVPD without programming like college football, Monday Night Football, and Jimmy Kimmel Live!. YouTube TV says that it will give subscribers a $20 monthly credit if the dispute drags on. “Last week 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 TV spokesperson said. “They’re now following through on that threat, suspending their content on YouTube TV. This decision directly harms our subscribers while benefiting their own live TV products, including Hulu + Live TV and Fubo.” YouTube TV is in a unique position, because it is growing even as the rest of the pay-TV landscape shrinks. Some Wall Street analysts are predicting that YouTube TV could become the largest pay-TV provider in the U.S. within the next year or so. According to YouTube, Disney was not willing to match the rates it gives to the largest providers, Comcast and Charter, even if YouTube TV passes them. You can read the full memo from Walden, Bergman and Pitaro below.
