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YouTube and Disney have reached an agreement that will restore all Disney-owned networks on YouTube TV, ending a blackout that lasted nearly two weeks and left subscribers without access to channels such as ABC, ESPN and FX.
In an update posted recently, YouTube said, “We’re happy to share that we’ve reached an agreement with Disney that preserves the value of our service for our subscribers and future flexibility in our offers. Subscribers should see channels including ABC, ESPN and FX returning to their service over the course of the day, as well as any recordings that were previously in their Library. We apologize for the disruption and appreciate our subscribers’ patience as we negotiated on their behalf.”
The dispute became public on October 30 when YouTube accused Disney of using “the threat of a blackout on YouTube TV as a negotiating tactic to force deal terms that would raise prices on our customers.”
YouTube wrote, “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 company said it remained committed to reaching a fair agreement and added, “If their content remains off YouTube TV for an extended period of time, we’ll offer subscribers a $20 credit.”
During Walt Disney’s earnings call a day before on November 13, Disney CEO Bob Iger addressed the impasse.
He said, “Obviously, we care deeply about our consumer, and our priority has always been to remain on their service without interruption, to close a deal on a timely basis so that interruption does not occur. The deal that we have proposed is equal to or better than what other large distributors have already agreed to, so we're not trying to really break any new ground, and while we've been working tirelessly to close this deal and restore our channels to the platform, it's also imperative that we make sure that we agree to a deal that reflects the value that we deliver, which both YouTube, by the way, and Alphabet have told us is greater than the value of any other provider.
“So, we're not trying to break new ground. The offer that's on the table is commensurate with deals that we've already struck with, actually distributors that are larger than they are. We're trying really hard, as I said, working tirelessly to close this deal, and we're hopeful that we'll be able to do so on a timely enough basis to at least give consumers the opportunity to access our content over their platform."
With a deal now finalized, YouTube TV subscribers are expected to regain full access to Disney’s networks throughout the day, along with restored DVR recordings, marking an end to one of the more high-profile carriage disputes in the streaming TV era.
This carriage standoff and its resolution have no bearing on Disney’s India business, which underwent a major restructuring last year after the company struck a deal with Reliance Industries Ltd.
Following that transaction, Star India’s operations were moved under the newly formed JioStar entity, which now controls the television and streaming assets that previously came under Disney Star.