Disney Might Pull Its Channels From YouTube TV

We may earn a commission from links on this page.

Nothing says Halloween quite like an ominous countdown. Right now, subscribers to YouTube TV, the company's live TV service, are waiting to learn if they'll still have access to Disney-operated channels, including ABC and ESPN, come Oct.31. It's the latest conflict in ongoing fee disputes between Google and its various content providers, but even if Disney takes its ball and goes home, you won't be left entirely without options.

When could Disney channels go dark on YouTube TV?

According to Variety, if Disney and Google are unable to reach a deal by the end of Thursday, all Disney networks will vanish from YouTube TV on Oct. 30 at midnight ET. These include Disney Channel, ESPN, ABC News, Disney Jr., FX, FXX, FRXM, NatGeo, Freefrom, and even local ABC stations.

It's not the first time YouTube has been through something like this. Last February, Paramount made a similar threat before eventually reaching an agreement that saw no pause in customer access to its channels. Since then, YouTube has had similar conflicts with Fox Corp., NBC Universal, and Univision, with only the Spanish-language network failing to reach a deal before its channels went dark.

It's all about licensing fees

What's happening here all comes down to licensing fees. To offer channels like the cable providers it's trying to replace, YouTube TV has to continually pay fees to content providers, and occasionally, those providers propose higher fees. That leaves YouTube in a bit of a lurch, as it tries to navigate between paying a fair price to its partners while also avoiding raising prices for its subscribers.

Disney told Variety that, "[t]his is the latest example of Google exploiting is position as the expense of their own customers," implying that Google was risking stripping away channels its customers had paid for by refusing to compensate Disney with "fair rates." Google in turn argues that giving into Disney's "costly economic terms" would force the company to "raise prices on YouTube TV," as well as leave the service in a rough spot when compared to Disney's own Live TV offering, Hulu + Live TV.

What happens if a deal isn't reached

Personally, I wouldn't take either company's statement too seriously, at least if the earlier Paramount and NBC Universal conflicts are anything to go by—there's a good chance a deal will be reached before YouTube TV subscribers are affected. But as with those earlier conflicts, YouTube is willing to make it up to its customers if they lose access to Disney content.

"If it [Disney content] remains unavailable for an extended period of time, we will offer subscribers a $20 credit," YouTube said. That would be enough to subscribe to a month of the Disney+, Hulu, and ESPN bundle with ads, although YouTube hasn't said if the credit will be recurring.

Currently, a YouTube TV Base Plan starts at $72.99/month for your first three months, then jumps up to $82.99/month after that, making it slightly less expensive than Hulu + Live TV in the long term ($64.99/month for the first three months, then $89.99/month after that). Whether prices will stay the same if Disney pulls its channels remains to be seen.

View the full article