By Jay Bemis | Advertising Systems Inc.
As if they’re two political parties at an impasse, with each side blaming the other for the deadlock, Disney and YouTube TV once again are at odds over carriage rights fees.
This time, the dispute has resulted in Disney pulling its channels from YouTube TV, including the ESPN and ABC networks and their many offerings of college and pro football this past weekend. It extended when Monday Night Football between the Dallas Cowboys and Arizona Cardinals was all dark for an estimated 8 million YouTube TV subscribers last night.
“YouTube TV and its owner, Google, are not interested in achieving a fair deal with us,” Disney ownership keeps saying as the stalemate drags on.
Counters YouTube: “Last week Disney used the threat of a blackout on YouTube TV as a negotiating tactic to force deal terms that would raise prices on our customers. They’re now following through on that threat.”
This is the second time that college football fans have experienced a carriage-rights dispute this fall. Fox and YouTube TV ended a similar stalemate in late August — just a day before a threatened blackout was to occur.
“We’re happy to share that we’ve reached a deal with Fox to keep their content on YouTube TV,” YouTube said when announcing the end to that impasse. “This means that Fox channels, including the Fox Broadcast Network, Fox News and Fox Sports, remain available, and football fans will not miss any of the action … .”
Such Disputes Can Lead to Eventual Happiness
Some good can come out of these disputes for streaming subscribers: DirecTV, for example, just gave its Stream subscribers a free Disney+, Hulu and ESPN Unlimited content package “at no extra cost.”
The gift, it seems, arose from a brief blackout of DirectTV about a year ago and is modeled after a similar Disney arrangement recently struck with Charter. The DirectTV Stream offer centers on a Gemini device that Stream subscribers use for their service.
What does DirectTV get out of the Disney-Hulu-ESPN deal?
“With cord-cutting accelerating and streaming churn rates climbing, DirecTV needed a compelling value proposition,” it said in a joint announcement with Disney.
“Offering premium content for free helps reduce cancellations and attract new subscribers.”
It also gets:
- Streaming Integration: The Gemini device acts as a hub for both live TV and streaming apps, including Disney+, Hulu and ESPN, “creating a seamless viewing experience.”
- Competitive Edge: By bundling services that would otherwise cost $29.99/month separately, DirecTV positioned itself as a “hybrid solution that rivals standalone streamers.”
- ESPN Unlimited: This newly launched platform offers access to all ESPN linear channels, plus ESPN+, ESPN3 and regional networks such as SECN+ and ACCNX.
What Does Disney Get Out of the DirecTV deal?
- Expanded Reach: Disney taps into DirecTV’s millions of satellite, streaming and U-verse customers without needing direct marketing.
- Bundled Promotion: Disney also is offering a separate paid bundle to non-DirecTV users, but DirecTV subscribers get it free — boosting adoption and brand loyalty.
“This partnership reflects a broader trend: Traditional TV providers are evolving into streaming aggregators,” the two companies said.
“By offering premium content from Disney at no extra cost, DirecTV is betting on bundled value, convenience and customer loyalty to stay competitive in a fragmented media landscape.”
