Disney, Google CEOs join YouTube TV carriage negotiations
Disney, Google CEOs join YouTube TV carriage negotiations
A deal between the two sides could be moving closer to the finish line, avoiding a blackout of ESPN and other channels for a third weekend of sports.
With another weekend drawing closer, YouTube TV subscribers are probably angrily anticipating missing top college football games on ABC and ESPN, and potentially “Monday Night Football” as well. But there may be reason to hope that such games will indeed be available to YouTube TV customers, as reports indicate that the streamer may be closing in on a new carriage deal with Disney that will allow the channels to be restored.
Key Details:
- Getting there: The Athletic reports “potential renewed momentum” in carriage talks between YouTube TV and Disney.
- Big questions answered: The outstanding issue between the two is how much YouTube TV will pay for Disney’s non-sports channels.
- The bosses are here: CEOs of Disney and YouTube’s parent company, Google, are more involved in talks.
Andrew Marchand of the New York Times reported on Wednesday that there was “potential renewed momentum” for a new carriage deal between Disney and YouTube TV. At the moment, the biggest issue between the two sides is how much YouTube TV should pay for channels like FX and National Geographic that don’t carry live sports, according to Marchand. Disney-owned channels have been blacked out on YouTube TV since the end of October.
Distributors are often forced by programmers to take less popular channels in a package with sports networks that are widely consumed. Disney says that it gives discounts based on bundled prices for all of its channels, but YouTube TV is likely trying to nudge that price even lower.
Marchand also reports that Disney CEO Bob Iger and Google chief executive Sundar Pichai are getting more involved in the negotiations, which could be another sign that talks are moving forward. Iger talked about the negotiations on Thursday morning, during Disney’s conference call with analysts to discuss its quarterly earnings report.
“The deal that we have proposed is equal to or better than what other large distributors have already agreed to,” Iger said. “So, we’re not trying to really break any new ground. And while we’ve been working wirelessly to close this deal and restore our channels to the platform, it’s also imperative that we make sure that [a deal] reflects the value that we deliver, which both YouTube, by the way, and Alphabet have told us is greater than the value of any other provider.”
Disney chief financial officer Hugh Johnston spoke about the dispute on CNBC on Thursday morning as well, saying that negotiations were ongoing, but also stating that Disney is “ready to go as long as they want to” when referring to the “challenging battle” with YouTube TV.
There is clear interest by both sides in restoring Disney-owned channels to YouTube TV, but the deal isn’t done yet. Will it be finished before the weekend, or will YouTube TV customers have to face another Saturday without access to top college football games on ABC and ESPN?
YouTube TV
YouTube TV is a live TV streaming service with more than 60 channels for $82.99/month. This plan includes local channels 32 of the top 35 cable channels, and regional sports networks (RSNs) in select markets. The base plan includes more than 100 live channels, including major broadcast networks like ABC, CBS, FOX, and NBC, as well as popular cable channels such as ESPN, CNN, FX, USA Network, and TNT. Local channels are included in most markets, making YouTube TV a full replacement for traditional cable for many viewers.