Digital media 3 min read

Disney and YouTube TV Reach Deal, Ending 15-Day Standoff

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Editors Desk Source: WSJ:

Published 4 hr ago

A scene from ABC’s ‘Abbott Elementary’ show. Gilles Mingasson/Disney

ESPN, ABC and other Disney networks return to roughly 10 million YouTube TV customers

Disney DIS -1.68%decrease; red down pointing triangle and Google’s YouTube TV have signed a deal that will return popular channels such as ESPN and ABC to roughly 10 million households after a 15-day standoff, the two companies said.

The multiyear agreement will immediately return Disney’s networks to YouTube TV subscribers. As part of the pact, YouTube TV will also now be able to offer ESPN Unlimited, Disney’s new ESPN streaming service at no extra cost to customers. YouTube TV said that feature should be available to its subscribers by the end of 2026.

While contract disputes between programmers and distributors are commonplace, they are often resolved before any channels actually go dark. But the battle between Disney and YouTube TV pitted two entertainment titans against one another and grew particularly tense. Each side accused the other of negotiating in bad faith and of misleading consumers about the issues dividing them.

Negotiations got stuck on the fees Disney was seeking for YouTube TV to carry ESPN and other networks, as well as guarantees YouTube TV was after that would allow it to adjust rates as the service added customers.

YouTube TV also accused Disney of offering better deals to its own pay-TV distributors, including Hulu + Live TV.

Disney said that wasn’t the case and that YouTube TV had rejected offers that other similarly-size distributors had accepted.

The blackout left both sides bruised. Ratings at ESPN and ABC suffered, while YouTube TV saw some customers drop the service out of frustration and sign up with other distributors. YouTube offered customers a $20 credit because of the blackout.

In a statement, Disney Entertainment Co-Chairmen Alan Bergman and Dana Walden and ESPN Chairman Jimmy Pitaro said the deal “recognizes the tremendous value of Disney’s programming and provides YouTube TV subscribers with more flexibility and choice.”

A YouTube TV spokeswoman said the new pact with Disney “preserves the value of our service for our subscribers and future flexibility in our offers.”

Both YouTube TV and Disney have a history with tough negotiations. Last year, Disney went dark on satellite broadcaster DirecTV for two weeks until reaching an agreement and in 2023 its networks were off cable operator Charter for 10 days because of a contract dispute.

YouTube TV stopped carrying Spanish-language broadcaster Univision at the end of September because of a carriage dispute. It also had tense negotiations with NBCUniversal and Fox before entering into new accords.

As cable and satellite pay-TV providers have experienced significant subscriber losses from cord-cutting, YouTube TV’s internet-delivered virtual channel platform has benefited. Analysts expect it will be the largest provider in the next few years.

Its growing size has increased its leverage in negotiation fees with programmers.

A YouTube spokeswoman declined to say if the streamer planned to increase subscription prices as a result of the Disney agreement.

Write to Joe Flint at Joe.Flint@wsj.com