Disney and YouTube TV have reached a new distribution deal, resolving a 15-day contract dispute that led to the removal of ABC, ESPN, and other Disney-owned channels from YouTube TV's lineup. The agreement restores these channels for YouTube TV's 10 million subscribers, just in time for significant college football games and other programming.
The core of the dispute centered on distribution fees. Disney sought increased fees to offset the costs of content production, its streaming ambitions, and expensive sports rights deals, while YouTube TV argued that viewership for some of Disney's channels was declining and pushed back against the proposed price hikes.
This conflict highlights the ongoing challenges in the media landscape as programmers try to increase fees to compensate for a shrinking pay-TV subscriber base, and distributors like YouTube TV aim to keep their escalating monthly bills in check. Disney also had accused YouTube TV of leveraging the dispute to potentially drive customers towards competing live TV streaming services.
This settlement is the latest in a series of similar disputes between YouTube TV and other content providers.
