With the clock ticking on YouTube TV’s deal with Disney, a new report reveals that Google’s streamer has at least one big demand for Disney.
Later today, on October 30, Google’s deal with Disney over YouTube TV broadcasts is set to expire and, with it, take down channels such as ABC, ESPN, and more. It’s just the latest in a line of strained negotiations YouTube TV has had with major broadcast partners.
According to The Wall Street Journal, Google’s YouTube TV has “become an 800-pound gorilla” in this business and this Disney negotiations is a place where the platform it looking to flex its muscle. Specifically, YouTube TV’s status as not only a quickly growing platform with 10 million subscribers, but the third-largest distributor, is playing a role in the contract renewal. The report brings out that Google is looking to strike a 1-2 year deal with Disney rather than the industry-standard 3-5 year deal due to its faster growth.
The report further mentions that YouTube TV is seeking rates “similar to what bigger distributors” like Comcast and Charter (Spectrum) pay. This apparently “irritates” programmers, with Disney believeing that it is the content from itself and programmers like it that make YouTube TV appealing and, as such, “they should be paid accordingly.”
Disney said:
We invest significantly in our content and expect our partners to pay fair rates that recognize that value.
If YouTube TV and Disney fail to reach an agreement, Disney-owned channels such as ABC and ESPN will go dark, as will the extensive on-demand library that’s available through YouTube TV.
The report also brings out that YouTube TV is still working on a deal with TelevisaUnivision, which saw its channels go dark on the platform in September. YouTube TV apparently proposed the idea of splitting these channels into a “more expensive specialty tier” as viewership data “doesn’t support keeping the service in its most popular package of channels,” which TelevisaUnivision apparently disagrees with.
We’ll have to wait until later tonight to see how the Disney deal goes down, but YouTube’s prior negotiations with Fox and NBC both saw a temporary extension at the last-minute before eventually reaching a long-term deal.
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