After losing $4M/day, Disney reaches deal with YouTube TV
What's the story
Disney and YouTube TV have struck a new carriage deal, ending a 14-day blackout that left subscribers without access to popular Disney-owned channels like ABC, ESPN, and FX. The dispute is estimated to have cost Disney around $4.3 million per day in lost revenue. The new agreement replaces their previous distribution deal from December 2021 after a two-day blackout at the time.
Bundle details
YouTube TV to offer Disney+ and Hulu bundle
The new agreement also allows YouTube TV to offer the Disney+ and Hulu bundle through "select YouTube offerings." Disney has confirmed that some networks will be available in genre-based packages on YouTube TV. The deal comes just in time for a major college football Saturday on ABC and ESPN.
Official response
Disney's statement on the new agreement
Disney Entertainment co-chairmen Alan Bergman and Dana Walden, along with ESPN chairman Jimmy Pitaro, released a joint statement saying, "This new agreement reflects our continued commitment to delivering exceptional entertainment and evolving with how audiences choose to watch." They added it recognizes "the tremendous value of Disney's programming and provides YouTube TV subscribers with more flexibility and choice."
Subscriber assurance
YouTube TV's response to the agreement
A YouTube spokesperson said, "We're happy to share that we've reached an agreement with Disney that preserves the value of our service for our subscribers and future flexibility in our offers." They assured subscribers that channels including ABC, ESPN, and FX would return over the course of the day along with any recordings previously in their Library.
Past disputes
Previous standoff and YouTube TV's leverage
The 14-day blackout was longer than Disney's previous standoff with DirecTV. YouTube TV's exclusive NFL Sunday Ticket rights and high customer satisfaction gave it significant leverage, keeping many subscribers despite missing Monday Night Football. The service offered users a $20 credit, potentially totaling $200 million, as reported by Sportico, if fully claimed while negotiating new rates and content options including a sports-focused skinny bundle.