YouTube TV accuses Disney of using blackout threat to drive up prices as it yanks ESPN, ABC from lineup

In a significant shift, YouTube TV has removed Disney channels, including popular networks ABC and ESPN, from its service after failing to finalize a new contract. This decision, made public on Thursday, follows a tense negotiation period between the two media giants. YouTube TV accused Disney of leveraging a potential blackout as a tactic to push for terms that would inflate costs for subscribers. In an official blog post, YouTube expressed frustration, stating, "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. 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." The fallout from this negotiation means that over 20 channels, including key Disney content, will no longer be available to YouTube TV subscribers. The two companies had been in discussions but were unable to agree on a new distribution contract before the previous one lapsed on October 30 at 11:59 p.m. ET. YouTube TV, which compensates broadcasters for channel access, previously faced a similar situation with NBCUniversal last month, which they resolved with a temporary extension to prevent a blackout. In their recent statement, YouTube reassured customers, acknowledging the inconvenience of losing familiar channels and expressing commitment to reaching a new agreement with Disney. They also mentioned that affected members would receive a $20 credit if the blackout extends for a prolonged period. As the negotiations continue, Disney has yet to respond to the situation. Notably, Disney had issued warnings about the potential removal of its content from YouTube's platform just a week prior to the blackout. According to Nielsen, YouTube remains a dominant player in the media distribution landscape, capturing over 13% of TV watch-time in July.