“There’s nothing new under the sun,” said a wise guy a while back. Consider those words if you’re looking for Disney-owned channels like ABC and ESPN on your YouTube TV live service today. They’re gone, as Google and Disney have failed to hammer out a new streaming contract. This contentious process is the same thing that happens regularly to cable and satellite customers.
Variety reports that Disney’s networks were removed from YouTube TV shortly before midnight Eastern US time, a few minutes before the current contract expired. Even recorded programs from Disney’s channels aren’t safe, as YouTube TV has removed those shows and broadcasts from users’ virtual DVR storage.
“Carriage deal” is the industry term for agreements between content and channel owners like Disney and service providers like YouTube/Google. This is often a patchwork of payments between some of the world’s largest media companies, in a process that’s largely invisible to viewers… until something goes wrong. Then these companies start pointing fingers publicly, attempting to put pressure on the other party to get a better deal. YouTube TV has been a lightning rod for these disagreements, sparring with NBC, Paramount/CBS, and Fox in the last calendar year.
Disney fired the first shot in this particular volley by raising its rates. The company accuses Google of “using market dominance to eliminate competition.” Disney says that Google wants a better deal than its competitors, including cable and satellite providers who have more customers. YouTube representatives point out that this will benefit Disney’s own products, Hulu + Live TV and Fubo, which compete directly with YouTube TV. Disney also offers dedicated ESPN streaming packages.
That said, this comes at a particularly bad time for YouTube TV, which now costs $83 USD per month. This is prime sports season for the United States, with the NFL, NBA, and NHL in full swing along with college leagues. Primetime TV, though suffering badly from the streaming boom, is still well into the regular season of its scripted shows.
Google representatives say that if YouTube TV customers are without Disney programming “for an extended period of time,” it will give them a $20 credit on their bill. That’ll be cold comfort to hundreds of thousands of Dallas Cowboys fans if they miss Monday Night Football in three days.