that won’t be seen by a significant portion of potential viewers.
“We realize this has been a challenging week, with everyone asking the same question as millions of YouTube TV subscribers during the busiest time of the year in sports: When will ESPN and ABC be back on the service?” said the memo, sent by Disney Entertainment Co-Chairs Dana Walden and Alan Bergman, and ESPN Chairman Jimmy Pitaro. “We wish we could give you that answer today, but unfortunately, we are headed into another sports-packed weekend without a deal in place.”
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Google’s YouTube TV removed Disney’s networks late on October 30, after the two sides could not come to terms on a renewal that would keep ABC, ESPN and other Disney properties on the internet TV service. The main sticking point is price — Disney is asking for rate hikes that Google isn’t willing to agree to. At the same time, Google has been trying to push TV companies to accept new tiers of programming that could result in some subscribers opting to drop receiving certain networks. The result has been a decline in audiences watching some of Disney’s most popular offerings, ranging from ESPN’s “College GameDay” to ABC’s “Jimmy Kimmel Live.”
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YouTube TV has said that if Disney’s channels remain unavailable for “an extended period of time,” it will offer subscribers a one-time $20 credit. YouTube TV’s base subscription plan costs $82.99 per month.
“Once 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,: YouTube said in a statement Friday. “Our team stands ready to make a fair agreement in line with their deals with other distributors and we encourage Disney to come to the table and do what’s best for our mutual customers.”
A person familiar with the matter took issue with some of the assertions made by the Disney executives. This person says Disney has sought rates higher than what Charter and DirecTV pay for ABC and other networks. YouTube has sought guarantees that it won’t have to pay more than larger distributors if the size of its subscriber base should surpass those rivals over the course of the new contract, this person says.
Disney is the latest in a series of media companies to square off with Google over YouTube TV in recent months. Others that have fought with the company include YouTube TV dropped Univision and other TelevisaUnivision-owned networks at the end of September after the two sides could not reach a new agreement — and those outlets remain sidelined from the Google service.
The Disney executives said the company has worked to make an appealing offer to YouTube TV. The company “began these negotiations by offering YouTube TV a deal that would cost less overall than the terms of our recently expired license. That’s real savings that YouTube TV could pass along to its customers,” the said in their memo. “We’ve offered innovative, bespoke programming packages—tailored to sports fans, entertainment fans, kids and families—that would provide tremendous flexibility for YouTube TV and greater choice and value for its customers.”
Even so, the company has made little headway. “Despite all this, YouTube TV continues to insist on receiving preferential terms that are below market and has made few concessions,” the three executives said.
Disney has tried to wage battle against YouTube TV in the public arena, offering last week’s “College GameDay” telecast via X and its own mobile app without requiring a subscription, and making public a request for YouTube TV to show ABC News’ telecast on Election Night. Neither appears to have resulted in any thawing out of positioning on either side.
