Millions of YouTube TV subscribers may lose access to Disney-owned networks, including ABC and ESPN, as negotiations between Walt Disney Co. (NYSE:DIS) and Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google stall over carriage fees.
Disney Warns Of Potential Blackout
Disney has alerted viewers that its channels could disappear from YouTube TV as soon as next week if a new distribution agreement isn't reached, reported Variety.
The current deal, which covers ABC local stations, ESPN, Disney Channel, FX networks, National Geographic and more, expires on Oct. 30.
A Disney spokesperson said, "For the fourth time in three months, Google's YouTube TV is putting subscribers at risk of losing the most valuable networks they signed up for… We invest significantly in our content and expect our partners to pay fair rates that recognize that value."
"If we don't reach a fair deal soon, YouTube TV customers will lose access to ESPN and ABC, and all our marquee programming — including the NFL, college football, NBA and NHL seasons — and so much more," the spokesperson told the publication.
Disney reports that, according to Nielsen data, total viewing time of its networks on YouTube TV has increased over 15% year-over-year.
Disney did not immediately respond to Benzinga's request for comments.
YouTube TV Pushes Back
YouTube TV, the U.S.'s largest internet-based pay-TV service with over 10 million subscribers, responded that Disney's proposed fees would raise costs for customers and favor Disney's other streaming products like Hulu + Live TV.
In a statement posted on its website, YouTube said, "We’ve been working in good faith to negotiate a deal with Disney that pays them fairly for their content on YouTube TV."
However, without an agreement, Disney content will have to be removed and subscribers will receive a $20 credit if the blackout persists.
Disney Continues To Battle With Streaming Negotiations
This dispute follows multiple YouTube TV negotiations earlier this year with Paramount Global, now called Paramount Skydance (NASDAQ:PSKY), Fox Corporation (NASDAQ:FOX), NBCUniversal, owned by parent company Comcast Corporation (NASDAQ:CMCSA) and Univision networks.
Price Action: Disney shares slipped 0.044% to close at $113.03 on Thursday, marking a 1.99% gain so far this year, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
