How popular are the Dallas Cowboys?
Not popular enough to convince YouTube TV to pay up for Disney’s TV networks, including ESPN, apparently.
Roughly 10 million YouTube TV subscribers were unable to watch America’s Team take on the Arizona Cardinals on ESPN’s “Monday Night Football,” as the Disney-owned network remains blacked out on the Google-owned TV service.
Disney and YouTube TV’s stalemate centers on money. The media powerhouse wants YouTube TV to pay what it’s calling the market rate for its channels, while YouTube TV warns that doing so would require it to raise prices for the second time in less than a year.
Until the two sides resolve the carriage dispute, ESPN and other channels from Disney won’t be available on YouTube TV. Google has said that it will refund YouTube TV subscribers $20 if the blackout lingers for an “extended period of time,” though it’s unclear what the threshold for such a bill credit is.
Disney and ESPN have made several attempts to get viewers on their side.
The Mouse House set up a website sharing its side of the story, complete with tools for YouTube TV subscribers to express their frustration with Google. ESPN broadcast its flagship college football show “College GameDay” for free on the ESPN app and X. The sports network also recruited some of its top personalities, who spread the word about the YouTube TV blackout dispute on social media.
But so far, those attempts haven’t convinced Google’s YouTube to pay up for access to Disney networks like ESPN.
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It’s unclear which company will fold first, as each could make a convincing case for which side has more leverage.
Disney’s argument is that Google-parent Alphabet is a $3.4 trillion bully that’s trying to play by different rules. A Disney spokesperson said YouTube TV’s parent company is “using its market dominance to eliminate competition and undercut the industry-standard terms we’ve successfully negotiated with every other distributor.”
YouTube TV could counter by saying that it’s keeping consumers top of mind, saying in a statement that “Disney is proposing costly economic terms that would raise prices on YouTube TV customers.” The company also noted that Disney offers competing virtual TV services, Fubo and Hulu + Live TV, which could give it more leverage.
In the end, both sides need each other. Disney’s TV business would take a huge hit without the affiliate fees from YouTube TV, which has grown into one of the biggest pay-TV services. And while YouTube TV is a drop in the bucket revenue-wise for Google and Alphabet, it’s a key part of their long-term strategy to control the living room.
Sports fans can only hope that both sides see that before the next weekend of college football.
