Copyright Vulture
Forget the streaming wars. How about the carriage wars? In the past year, YouTube has had heated negotiations with a number of entertainment companies, from NBCUniversal to Paramount to Univision, as it’s re-situated itself as a major streaming and pay-TV competitor. Now YouTube TV and the Walt Disney Company find themselves at a standstill as they go over renewal talks for Disney cable channels on the live-television streamer. The deal expires tonight, and if you’re a YouTube TV subscriber, you’re probably wondering what happens next. What exactly is going on between YouTube and Disney? Disney provides its cable channels to YouTube TV, but the two are having trouble renewing their carriage contract. YouTube has been butting heads with Disney over pricing. The Wall Street Journal reports that YouTube also wants shorter length deals with entertainment companies to gain more “leverage.” In a statement, YouTube said their negotiations with Disney have been “good faith” efforts to pay the company fairly for their channels on the streamer. They mention Disney’s counter-proposal includes “costly economic terms” that would raise prices for YouTube TV subscribers and would only be “benefiting Disney’s own live TV products — like Hulu + Live TV and, soon, Fubo.” Disney countered in a statement to Variety, saying, “This is the latest example of Google exploiting its position at the expense of their own customers,” and they request “our partners to pay fair rates.” But their current contract expires on October 30, at 11:59 p.m., and there seems to be no short-term extension in sight. How will that affect my YouTube TV subscription? Once that contract expires, YouTube TV subscribers will no longer have access to Disney-owned broadcast channels, if the two companies cannot agree on a renewal deal. So that would include ABC, ESPN, Disney Channel, Disney Junior, Nat Geo, and FX channels. YouTube claims that it would compensate its subscribers with a $20 credit if these channels remain off the service for an “extended period of time.” Twenty dollars will get you a month of Disney+ if you’re desperate for that Dancing With the Stars finale. Speaking of which… So, no Dancing With the Stars? Exactly. Time to start bugging a friend with Hulu + Live TV instead or invest in an antenna. Wait, what about my sports? Well, it’s kind of a doozy. You’ll still have access to Sunday Night Football through NBC. But when it comes to Monday night, you’re out of luck if you only subscribe to YouTube TV. ESPN is included in Disney’s collection of channels, so you won’t have access to any of their offerings. That includes part of the NFL, college football, the NBA, and more. Having ESPN definitely gives Disney some good leverage towards YouTube, despite it coming at the cost of your regular sports programming. Ah, streaming. How long will this last? It’s still possible that the two companies will reach an agreement before the renewal deadline. YouTube has navigated similar impasses with other entertainment companies this year. In February, ahead of March Madness, YouTube and Paramount found themselves at a standstill. The two negotiated a short-term extension to continue talks and were able to prevent a blackout. NBCUniversal also received a short-term extension when their deal with YouTube expired a month ago; they reached an agreement days later so that NBC’s channels could remain for subscribers. On the other hand, YouTube proved unable to reach a deal with Univision, so its cable channels have been dark on YouTube TV since September 30, despite the displeasure of even President Trump.
