YouTube TV No Deal: Disney Dispute Continues
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Disney and YouTube TV Dispute: Channels Remain Blacked Out
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Over a week after channels first vanished, there’s no sign of a deal between Disney and YouTube TV, with a “leaked” Disney memo and YouTube’s response signaling that neither side is giving in.
The Athletic, part of The New York Times, reported on a memo distributed to Disney employees today which addresses the ongoing blackout of Disney-owned channels such as ABC, and especially ESPN, on YouTube TV.
Disney’s Position: Fair Terms and Investment in Content
The memo reads, at least in part:
…Rather than compete on a level playing field, Google’s YouTube TV has approached these negotiations as if it were the only player in the game.
It goes without saying that the reason so many consumers value our programming above others is because we invest in the best talent, creators and content in the world, and we cannot allow anyone to undercut our ability to do so.
YouTube TV continues to insist on receiving preferential terms that are below market and has made few concessions.
Other portions of the memo see Disney explaining that it has offered YouTube TV “fair terms that are in line with the more than 500 other distributors that have renewed their agreements since last summer, including the top distributors, who are far larger than YouTube TV.”
youtube TV’s Response: Accusations of Misrepresentation
Google, in response to the “leak,” accuses Disney of leaking the memo to the press intentionally and “misrepresenting the facts.” YouTube TV “stands ready” to make a deal, the statement reads:
Onc again, Disney is resorting to their old tactics like leaking documents to the press, negotiating in public through their paid talent and misrepresenting the facts including from the deals they’ve offered and taking credit for our product proposals. Our team stands ready to make a fair agreement in line with market.
the Core of the Dispute: Value and Market Rates
The central issue appears to be Disney’s insistence on receiving market rates for its channels, reflecting the value of its content, particularly ESPN. Disney argues that YouTube TV is attempting to secure preferential terms, undermining its ability to invest in high-quality programming.YouTube TV, conversely, suggests Disney is being unreasonable and engaging in public relations tactics rather than good-faith negotiation.
Impact on Consumers
The blackout primarily affects YouTube TV subscribers who are fans of Disney-owned channels, especially ESPN. This is particularly impactful during peak sports seasons like college and professional football. Subscribers are left to find option