TLDR
- Disney channels including ESPN, ABC, FX, Nat Geo, and Disney Channel were removed from YouTube TV after the companies failed to reach a new distribution agreement by the October 31 deadline
- YouTube TV accused Disney of using the blackout threat as a negotiating tactic and said the decision benefits Disney’s competing services like Hulu + Live TV and Fubo
- Disney claimed Google is using its $3 trillion market dominance to undercut industry-standard terms that other distributors have accepted
- YouTube TV announced it would offer subscribers a $20 credit if Disney content remains unavailable for an extended period
- Disney stock dropped 0.5% while Alphabet shares rose 1.2% following the dispute
Disney pulled multiple channels from YouTube TV on October 31 after the two companies couldn’t agree on new distribution terms. The blackout happened just before midnight Eastern time.
The channels affected include ESPN, ABC, FX, Nat Geo, and the Disney Channel. YouTube TV subscribers lost access to all Disney programming at 11:59 PM ET.
YouTube TV posted a statement blaming Disney for the situation. The platform said Disney used the threat of a blackout as a negotiating tactic to force higher prices on customers.
Google’s streaming service claimed Disney’s decision directly harms subscribers while helping Disney’s own competing products. These include Hulu + Live TV and Fubo.
Disney fired back with its own statement. The company said YouTube TV chose to deny subscribers valuable content by refusing to pay fair rates for channels like ESPN and ABC.
The dispute centers on licensing fees and distribution terms. Disney argued that Google is leveraging its market position to get better terms than other distributors.
Market Reaction and Subscriber Impact
Disney’s stock price fell 0.5% ahead of Friday’s opening bell. Alphabet shares moved in the opposite direction, rising 1.2%.
The S&P 500 futures were up 0.7% during the same period. Neither company’s stock took a major hit from the disagreement.
YouTube TV made one concession to angry subscribers. The platform said it would offer a $20 credit if Disney content stays off the service for an extended period.
The definition of “extended period” wasn’t specified in YouTube’s announcement. Subscribers will have to wait to see how long the blackout lasts.
Corporate Standoff Continues
Disney referenced Google’s $3 trillion market cap in its response. The entertainment company accused Google of using its size to eliminate competition.
Disney said it has successfully negotiated industry-standard terms with every other distributor. The company claims Google is the outlier in these negotiations.
YouTube TV countered that Disney’s demands would force price increases on customers. The platform urged Disney to work constructively toward a fair agreement.
Both companies expressed frustration about the outcome. Each side said they know how disappointing this is for subscribers.
The two corporate giants continue to urge each other to reach a resolution. No timeline has been provided for when negotiations might resume.
YouTube TV remains committed to restoring Disney networks to its platform. Disney said it wants to work toward a resolution as quickly as possible.
The blackout affects millions of YouTube TV subscribers who rely on ESPN for sports programming. ABC viewers also lost access to network television content and local news.
The post Disney (DIS) Stock: ESPN and ABC Go Dark on YouTube TV After Failed Negotiations appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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