Disney reaches new deal with YouTube TV, ending a blackout that lasted over two weeks

In this Sept. 20, 2017, file photo, the logo of a Disney store is pictured on the Champs Elysees Avenue in Paris, France. The Walt Disney Co. reports earnings Tuesday, Aug. 7, 2018. (AP Photo/Francois Mori)

Disney and YouTube TV reached a new deal to bring channels like ABC and ESPN back to the Google-owned livestreaming platform Friday, ending a blackout for customers that dragged on for over two weeks.

“As part of the new deal, Disney’s full suite of networks and stations -- including ESPN and ABC -- have already begun to be restored to YouTube TV subscribers,” The Walt Disney Co. said in a statement.

YouTube TV also confirmed the return of Disney content on its platform, noting that subscribers should see channels back “over the course of the day.” It apologized for the disruption and thanked customers for their “patience as we negotiated on their behalf.”

Disney content went dark on YouTube TV the night of Oct. 30 after the two sides failed to reach a new licensing deal. In the days that followed, YouTube TV subscribers were left without Disney channels on the platform -- notably disrupting coverage of top college football matchups and professional sports games, as well as news and entertainment programming.

Beyond ESPN and ABC, other Disney-owned content removed from YouTube TV during the impasse included channels like NatGeo, FX, Freeform, SEC Network, ACC Network and more.

Disney Entertainment Co-Chairmen Alan Bergman and Dana Walden and ESPN Chairman Jimmy Pitaro said Friday that they were “pleased that our networks have been restored in time for fans to enjoy the many great programming options this weekend, including college football.”

When talks broke down last month, YouTube TV said Disney was proposing costly terms that would lead to higher prices for and fewer choices for its subscribers. It accused Disney of using the blackout as a negotiating tactic -- claiming the maneuver also benefited Disney’s own streaming products like Hulu + Live TV and Fubo.

Disney, meanwhile, said that YouTube TV had refused to pay fair rates for its channels. The California entertainment giant also accused Google of “using its market dominance to eliminate competition.” And executives blasted the platform for pulling content “prior to the midnight expiration” of their deal in late October.

Both sides also publicly sparred over negotiations and content available leading up to Nov. 4 elections across the U.S.

By the time Disney’s channels returned to YouTube TV, Google’s streamer said it had “reached an agreement with Disney that preserves the value of our service for our subscribers and future flexibility in our offers.” Disney executives maintained that the deal reflected the company’s “continued commitment to delivering exceptional entertainment and evolving with how audiences choose to watch.”

The two-week blackout is among a growing list of licensing disputes seen in the streaming world today, particularly as competition grows overs hosting live content. And consumers often pay the price when company negotiations break down.

The showdown between Disney and YouTube was not their first. YouTube TV subscribers lost access to all Disney content after 2021 contract talks broke down, but that disruption lasted less than two days.

And YouTube TV has removed other content from its platform after expired agreements. Spanish-language broadcaster Univision has been unavailable on YouTube TV since Sept. 30, for example. Parent company TelevisaUnivision decried Google’s move, saying it would strip “millions of Hispanic viewers of the Spanish-language news, sports, and entertainment they rely on every day,” and called on the platform to reverse course.

YouTube TV’s base subscription plan costs US$82.99 per month -- which, beyond Disney content, currently includes live TV offerings from networks like NBC, CBS, Fox, PBS and more. The platform previously said it would give subscribers a US$20 credit its dispute with Disney lasted “an extended period of time” -- which it reportedly allowed customers to start claiming on Nov. 9.

Disney also doles out live TV through both traditional broadcasting and its own lineup of streaming platforms. ESPN launched its own streamer earlier this year, starting at US$29.99 a month. And other Disney content can be found on platforms like Hulu, Disney+ and Fubo. Disney currently allows people to bundle ESPN along with Hulu and Disney+ for US$35.99 a month -- or US$29.99 a month for the first year.

The Associated Press