Photo illustration of the YouTube TV logo displayed on a smartphone with the YouTube logo in the background.
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content from walt disney companyIncluding channels like ABC and ESPN. googleYouTube TV went on the air Thursday after the two companies failed to renew their streaming agreement.
“Despite our best efforts, we are unable to reach a fair agreement and starting today, Disney programming will no longer be available on YouTube TV,” the platform said in a statement Thursday.
The company said content recordings from more than 20 channels, including ABC and ESPN, and Disney will be removed from YouTube TV.
The two sides have been negotiating but were unable to reach a new distribution agreement until the existing agreement expires on October 30th at 11:59pm ET.
Disney did not immediately respond to a request for further comment. The media and entertainment conglomerate first warned of possible content removal last week.
In a statement on its official blog on Thursday, YouTube claimed that Disney “used the threat of a YouTube TV blackout as a negotiating tactic to force higher price terms on customers,” and that Disney is now following through on that threat.
“We do not agree to terms that benefit Disney’s unique live TV product while penalizing our members,” YouTube TV said in a post on its Help Center webpage. Disney’s live TV services include Hulu + Live TV and Prefectural security.
“We know how devastating it is to lose a channel you enjoy, and we remain committed to working with Disney to reach an agreement,” YouTube said in a statement, adding that it would offer members a $20 credit if their content is unavailable for an extended period of time.
YouTube TV pays broadcasters to stream their channels and has been in several tense negotiations over contract renewals in recent months.
Last month, content was nearly removed from YouTube TV before the two companies reached an agreement following a temporary extension that prevented shows such as “Sunday Night Football” and “America’s Got Talent” from going off the air.
CNBC reported last week that Disney intends to offer YouTube TV a distribution deal that gives some subscribers access to Disney+, Hulu, and ESPN+ at no additional cost. Disney previously offered similar terms to Charter, the nation’s largest pay-TV provider by subscribers.
But YouTube asked to bring Disney’s streaming content onto YouTube TV, allowing customers to watch shows on Disney+, Hulu and ESPN+ without leaving the platform, according to people familiar with the negotiations.
Disney has rejected that offer and has no intention of changing its request, a person familiar with the company’s thinking told CNBC.
The latest conflict between Disney and YouTube took a further turn when YouTube hired former Disney distribution chief Justin Connolly earlier this year, prompting Disney to file a lawsuit for breach of contract.
CNBC previously reported that Mr. Connolly recused himself from the discussion, according to a person familiar with the process.
According to Nielsen, YouTube is the top U.S. media distributor in terms of viewer engagement, accounting for more than 13% of TV viewing time in July. Analysts at MoffettNathanson told CNBC that the company is on track to surpass Disney and become the largest media company by revenue in 2025.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. With Comcast’s planned Versant spinoff, Versant will become CNBC’s new parent company.
