Disney May Remove Its Channels From YouTube TV
Nothing heralds Halloween like an ominous countdown. Subscribers to YouTube TV , the company’s live-streaming service, are currently waiting to find out whether they’ll still have access to Disney channels, including ABC and ESPN, starting October 31st. This is the latest conflict in the ongoing pricing dispute between Google and its various content providers, but even if Disney goes home, you won’t be completely without options.
When might Disney Channels stop working on YouTube TV?
According to Variety , if Disney and Google fail to reach an agreement by the end of Thursday, all Disney channels will disappear from YouTube TV on October 30 at midnight ET. This includes Disney Channel, ESPN, ABC News, Disney Jr., FX, FXX, FRXM, NatGeo, Freefrom, and even local ABC stations.
This isn’t the first time YouTube has faced something similar. Last February, Paramount made a similar threat , but ultimately reached a settlement that did not result in users being suspended from its channels. Since then, YouTube has had similar conflicts with Fox Corp. , NBC Universal , and Univision , with only the Spanish-language channel failing to reach an agreement before its channels were shut down.
It’s all about licensing fees
It’s all about licensing fees. To offer channels similar to those offered by cable providers, YouTube TV is forced to constantly pay content providers, who, in turn, occasionally offer higher rates. This puts YouTube in a difficult position, as it must balance between offering fair pricing to partners and avoiding higher prices for subscribers.
Disney told Variety that “this is the latest example of Google exploiting its position to the detriment of its own customers,” implying that Google risks depriving itself of channels its customers pay for by refusing to compensate Disney “fair prices.” In turn, the company claims that acquiescing to Disney’s “high-cost economics” will force the company to “raise YouTube TV prices” and put the service at a disadvantage compared to Disney’s own Live TV offering, Hulu + Live TV .
What happens if a deal is not reached?
Personally, I wouldn’t take either company’s announcement too seriously, at least judging by the previous conflicts between Paramount and NBC Universal—it’s likely that an agreement will be reached before it impacts YouTube TV subscribers. But, as with previous conflicts, YouTube is prepared to compensate its customers for the loss of access to Disney content.
“If [Disney content] remains unavailable for an extended period, we will offer subscribers a $20 credit,” YouTube stated. This would be enough for a month’s subscription to the ad-supported Disney+, Hulu, and ESPN bundle , although YouTube did not say whether the credit would be renewed.
Currently, the basic YouTube TV plan costs $72.99 per month for the first three months, then rises to $82.99 per month, making it slightly cheaper than Hulu + Live TV in the long run ($64.99 per month for the first three months, then $89.99 per month). Whether the prices will remain the same if Disney drops its channels remains to be seen.