Disney and YouTube TV have reached an agreement to restore Disney-owned channels, concluding a 15-day carriage dispute that captured significant public attention. The new multi-year deal reinstates access to popular networks such as ABC and ESPN, and introduces enhancements for YouTube TV’s approximately 10 million subscribers.
As part of the agreement, subscribers will receive access to the Unlimited tier of ESPN’s direct-to-consumer service without any additional charges. This deal also includes the availability of Disney’s “duo bundle” of Disney+ and Hulu in select YouTube offerings, along with the integration of some Disney networks into new genre-based add-on packages.
Negotiations Centered on Content Integration
Throughout the negotiations, a major point of contention was the technical process of content integration into YouTube’s ecosystem, specifically referred to as ingestion. While both companies publicly debated pricing, the core issue revolved around YouTube’s capacity to directly ingest specific Disney content. According to a source familiar with the negotiations, a compromise was reached which allows ESPN Unlimited content to be hosted within the YouTube TV app. However, YouTube will not integrate Disney channels into its broader channel store, a decision that programmers worry might undermine their long-term streaming business models.
In a joint statement, Alan Bergman and Dana Walden, Co-Chairmen of Disney Entertainment, alongside Jimmy Pitaro, Chairman of ESPN, emphasized the significance of the agreement. They stated, “This new agreement reflects our continued commitment to delivering exceptional entertainment and evolving with how audiences choose to watch. It recognizes the tremendous value of Disney’s programming and provides YouTube TV subscribers with more flexibility and choice.”
Restoration of Programming and Impact on Viewers
Disney programming, including cloud DVR recordings, will be restored on YouTube TV within the next 24 hours. The resolution of this dispute comes at a pivotal time, as the blackout was the longest ever experienced by Disney. It nearly extended into a third weekend of college football, risking interruption of the highly anticipated Monday Night Football matchup between the Dallas Cowboys and Las Vegas Raiders.
A spokesperson for YouTube expressed satisfaction over the agreement, stating, “We’re happy to share that we’ve reached an agreement with Disney that preserves the value of our service for our subscribers and future flexibility in our offers. We apologize for the disruption and appreciate our subscribers’ patience as we negotiated on their behalf.”
With the conclusion of this negotiation, both companies aim to enhance viewer experience while addressing the evolving landscape of content consumption.
