YouTube TV has warned that millions of subscribers could lose access to Fox channels this week if Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and Fox Corporation's (NASDAQ:FOX) fail to reach a new carriage agreement.
Fox Channels At Risk Of Going Dark
On Monday, YouTube, a subsidiary of Google, said that it is negotiating to renew its distribution deal with Fox, but the network is demanding payments above those received by partners providing comparable content.
"If we are unable to reach a new agreement by 5:00 PM ET on August 27, Fox channels, including Fox Sports, Business and News would become unavailable on YouTube TV," the streaming platform said in a blog post.
The company added that it aims to strike a deal "without passing on additional costs to our subscribers" and said affected users would receive a $10 credit if Fox content becomes unavailable for an extended period.
Fox Accuses Google Of Exploiting Market Power
Fox has responded sharply, accusing Google of leveraging its dominance in negotiations, reported Reuters.
The company is "disappointed that Google continually exploits its outsized influence by proposing terms that are out of step with the marketplace," they said.
Fox has begun alerting subscribers that they could soon lose access to its channels "unless Google engages in a meaningful way soon."
A Familiar Streaming Battle
This dispute comes months after YouTube TV narrowly avoided losing Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA) channels, including CBS and Nickelodeon, following a tense round of negotiations.
Alphabet's Strong Financial Position
In July, the company reported second-quarter revenue of $96.43 billion, up 14% year-over-year, with earnings per share of $2.31, exceeding analyst expectations for the 10th consecutive quarter.
Revenue growth was fueled by Google Search ($54.19 billion), YouTube Ads ($9.8 billion) and Google Cloud ($13.62 billion) with Alphabet ending the quarter holding $95.15 billion in cash and securities.
Price Action: Alphabet Inc.’s Class A shares dipped 0.091% to $208.30 in after-hours trading, while Class C shares edged down 0.038% to $209.08, according to Benzinga Pro data.
Benzinga’s Edge Stock Rankings show GOOGL sustaining a solid upward trend across short, medium and long-term timeframes. More detailed performance insights are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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