As the impasse between The Walt Disney Company and YouTube TV continues, rates for ABC are a “major sticking point” between the companies, a source familiar with the situation told Sports Media Watch. Disney is asking for a rate that is above what Charter and DirecTV currently pay for ABC networks, according to the source.
News of the ABC deadlock was previously reported by Drew Lerner of Awful Announcing. Lerner also reported that Disney and Google are “in alignment when it comes to the price of ESPN,” but a source disputed that characterization. Disney and YouTube have not publicly commented on the matter.
John Ourand of Puck reported earlier this week that ESPN had agreed to give YouTube TV the same rate as Comcast, Charter and DirecTV, which is believed to be for slightly more than $10/month per subscriber.
Ourand also said that YouTube TV is looking for a better rate than other distributors, something that could presumably activate most favored nation clauses in contracts. Per the earlier source, YouTube TV is asking to receive size-based MFNs ensuring that the company is not going to pay more than larger distributions when or if the service passes them. YouTube TV currently has an estimated 10 million subscribers, making it the fourth-largest U.S. pay TV distributor.
While most of the focus in discussion about the conflict has been on ABC and ESPN, the negotiations cover all of Disney’s networks, including little-watched non-sports networks. Those platforms are another factor in the stalemate, per Andrew Marchand of The Athletic, as YouTube has little interest in paying for them.
Despite the various areas of disagreement, Marchand reported Wednesday afternoon that there is “potential renewed momentum on a deal” between both companies and that Google CEO Sundar Pichai and Disney CEO Bob Iger “have become more involved.”
Over the weekend, YouTube TV started allowing its subscribers to redeem a $20 credit amid the blackout of Disney-owned networks. Ahead of a sports programming slate featuring Eagles-Packers on “Monday Night Football” and LSU-Alabama, Disney executives issued a note to employees expressing disappointment that there was no deal in place. YouTube TV subscribers have now missed two NFL games and two CFB weekends under this blackout.
ABC presents prime time sports programming throughout the year, including simulcasts of ESPN “Monday Night Football” and standalone SEC football games. The network has introduced more sports simulcasts of late and is slated to air both the Super Bowl and College Football Playoff National Championship Game in 2027. As the Disney-YouTube dispute continues, ABC will simulcast the Week 11 edition of “Monday Night Football” between the
With the dispute approaching the 14-day mark, Ben Swinburne of Morgan Stanley said in a note that Disney is losing $30 million/week as the blackout continues. Disney is holding its earnings call for Q4 on Thursday morning, the first fiscal quarter in which the new ESPN direct-to-consumer service has been available for consumers. The company no longer reports subscriber numbers for its streaming services, citing evolution within “the operating environment.”
YouTube TV has been involved in several carriage disputes this year with NFL rightsholders. This past October, the company reached a deal with NBCUniversal that prevented the Comcast-owned cable networks from being blacked out. Around the start of the college football season, YouTube TV and Fox Corporation agreed on a contract after inking a short-term extension to avoid a disruption in service.
Disney networks were unavailable on DirecTV for 13 days last fall before the two sides reached a deal in September. Rich Greenfield of LightShed Partners noted that this was the longest blackout ever and impacted one “Monday Night Football” game and Saturday slate of CFB. One year earlier, Disney and Charter squared off in a 11-day blackout that ended in a distribution deal ahead of the season premiere of “Monday Night Football.”
