Millions of YouTube TV subscribers across the United States have lost access to Disney-owned channels, including ESPN and ABC, after talks between Google and Disney over a new licensing agreement broke down late Thursday night.
The blackout, which began just before midnight, affects around 10 million YouTube TV customers and also includes other major Disney networks such as National Geographic, FX, and the Disney Channel. The dispute centers on carriage fees — the rates YouTube TV pays Disney to carry its content.
Disney said in a statement that Google, which owns YouTube TV, had “declined to reach a fair, market-based agreement” and accused the tech giant of using its market power to demand below-standard terms. “With a $3 trillion market cap, Google is using its dominance to undercut the industry-standard agreements we’ve negotiated with every other distributor,” a Disney spokesperson said.
YouTube TV rejected that characterization, saying Disney’s proposed deal would unfairly raise costs for subscribers. “Disney’s terms would disadvantage our members while benefiting Disney’s own live TV products,” the company said, referring to Hulu+ Live TV, a direct competitor in the streaming television market.
As the negotiations collapsed, YouTube TV confirmed that Disney-owned networks were removed from the platform. The company also promised a $20 credit to subscribers if the blackout continues for an extended period. “We know how frustrating this is for our members,” the company said. “We remain committed to reaching a fair agreement to restore access to Disney content.”
The standoff between Disney and Google is the latest in a series of disputes between streaming distributors and major media companies as both sides grapple with rising costs and changing consumer habits. Earlier this year, Google narrowly avoided similar blackouts after striking last-minute deals with Comcast-owned NBCUniversal, Paramount, and Fox.
Industry analysts say the dispute highlights the growing tension between traditional media firms and tech giants as audiences shift from cable to streaming. While YouTube TV and Disney’s Hulu+ Live TV are two of the largest online pay-TV services in the US, their competing interests have increasingly put them at odds over pricing and content control.
Both companies have said they are continuing negotiations, though no timeline for a resolution has been announced. For now, YouTube TV subscribers will have to go without live ESPN sports coverage, ABC programming, and Disney’s popular entertainment channels until an agreement is reached.
