Disney vs. YouTube TV: Contract Standoff Leads to Service Outage
Disney's networks, including ESPN, went off YouTube TV after failing to reach a licensing deal. YouTube TV claims Disney's demand would raise costs for subscribers, while Disney accuses Google of using market dominance to undercut industry terms. The standoff mirrors similar past negotiations with NBCUniversal and others.
In a dramatic turn of events, Disney's suite of popular television networks disappeared from YouTube TV after the two parties failed to reach a mutual licensing agreement. This disruption affects well-known channels like ESPN, ABC, and the Disney Channel, impacting millions of viewers across the nation.
YouTube TV, which serves over 10 million subscribers, made the announcement just before the stroke of midnight as their existing contract with Disney lapsed. The company alleged that agreeing to Disney's proposed terms would have led to increased prices for its subscribers and give undue advantage to Disney's own streaming services, such as Hulu + Live TV.
Negotiations between major media companies and YouTube TV have been tumultuous throughout the year, with prior near-misses involving giants like NBCUniversal, Fox, and Paramount. Despite the current impasse, both companies express a commitment to resolving the issue swiftly to restore service and maintain customer satisfaction.
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