Programming from The Walt Disney Company, which includes networks like ABC and ESPN, has been taken off Google‘s YouTube TV as of Thursday following unsuccessful negotiations to renew a streaming contract.
“In spite of our diligent attempts, we could not come to an equitable agreement, and effective immediately, Disney programming will be unavailable on YouTube TV,” the platform announced in a statement on Thursday.
Over 20 channels, such as ABC and ESPN, along with Disney content recordings, will no longer be accessible on YouTube TV, the company noted.
The two parties had been in discussions but failed to finalize a new distribution deal before their current contract lapsed on October 30 at 11:59 p.m. Eastern time.
Disney has not responded quickly to a request for additional comment. The media and entertainment giant first alerted regarding the possibility of content removal last week.
In a Thursday blog post, YouTube contended that Disney had “leveraged the threat of a blackout on YouTube TV as a negotiation strategy to impose terms that would increase costs for our customers,” and that Disney is now executing that threat.
“We will not consent to conditions that put our members at a disadvantage while aiding Disney’s own live TV services,” YouTube TV stated in a post on its help center page. Disney’s live television offerings include Hulu + Live TV and Fubo.
“We understand how disruptive it is when channels are lost, and we’re dedicated to continue working with Disney to reach an accord,” YouTube added in its statement, mentioning that if the content is unavailable for a protracted duration, it will provide members with a $20 credit.
YouTube TV compensates broadcasters for the rights to stream their channels and has been involved in numerous contentious negotiations over contract renewals lately.
Last month, programming was nearly pulled from YouTube TV before the companies came to an agreement following a temporary extension, avoiding the removal of shows like “Sunday Night Football” and “America’s Got Talent”.
CNBC reported last week that Disney was prepared to offer YouTube TV a distribution deal that would permit certain subscribers access to Disney+, Hulu, and ESPN+ at no additional cost. Disney has also previously offered similar arrangements to Charter, the largest U.S. pay TV distributor by subscribers.
Nevertheless, YouTube requested that Disney’s streaming content be integrated into YouTube TV, allowing customers to view programming on Disney+, Hulu, and ESPN+ without exiting the platform, per sources familiar with the talks.
Disney rejected that proposal and showed no intention of changing its stance, according to individuals knowledgeable about the company’s perspective who spoke to CNBC.
The latest dispute between Disney and YouTube has an added complexity after YouTube recruited former Disney distribution executive Justin Connolly earlier this year, leading Disney to file a breach-of-contract lawsuit.
Connolly has stepped back from the discussions, CNBC reported earlier, according to individuals conversant with the process.
YouTube emerges as the leading U.S. media distributor by audience engagement, accounting for over 13% of TV viewership in July, as reported by Nielsen. It is also projected to become the largest media company by revenue in 2025, surpassing Disney, according to analysts at MoffettNathanson speaking to CNBC.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant would become the new parent company of CNBC upon Comcast’s intended spinoff of Versant.
