Google’s YouTube and Walt Disney have struck a deal to restore the media giant’s networks to YouTube TV, ending a two-week blackout that left millions of US viewers without access to key programming, including Election Day coverage and “Monday Night Football.”
The companies said Disney’s full portfolio — including ABC, ESPN, FX, National Geographic and Disney Channel — would be reinstated from Friday.
YouTube TV’s base plan will also include ESPN’s full suite of sports content, including ESPN Unlimited, at no additional cost by late 2026.
Breakdown over carriage fees
The blackout began on October 30 after negotiations collapsed over carriage fees — the per-subscriber payments YouTube makes to distribute Disney’s linear networks.
Disney’s channels went dark on one of the largest US pay-TV streaming platforms, frustrating customers during a critical programming period.
CNBC reported Disney had sought about $10 a month per subscriber for ESPN, roughly in line with what it charges traditional cable distributors.
The companies declined to disclose final terms of the settlement, but both confirmed that service would resume without cost increases to YouTube TV subscribers.
Industry implications
The dispute highlights growing tension between content owners and streaming distributors as viewership shifts away from cable toward internet-based platforms.
YouTube TV, which analysts estimate has more than eight million subscribers, has gained leverage in talks thanks to Alphabet’s scale and diversified revenue base.
Bob Iger, Disney’s chief executive officer, said the company had proposed terms consistent with deals offered to other major distributors.
“Equal to or better,” he said on Thursday, referring to agreements recently reached with rivals such as Hulu + Live TV and Fubo.
YouTube had accused Disney of using the “threat of a blackout” to secure higher fees, while Disney said YouTube was seeking preferential rates below market standards.
During the standoff, YouTube promised affected customers a $20 credit if the networks remained offline for an extended period.
Broader pressure on pay-TV
For Disney, the impasse came at an awkward time.
The company’s most recent quarterly results missed revenue forecasts as weakness in its traditional TV business dragged on growth at its streaming and theme-park units.
A prolonged dispute with YouTube risked further eroding affiliate revenue, one of the few remaining profit engines in the firm’s media portfolio.
YouTube, meanwhile, has faced multiple carriage battles this year, including with Comcast’s NBCUniversal, Fox and Paramount.
Analysts say such disputes are likely to become more frequent as streaming distributors seek to contain content costs amid slowing subscriber growth and rising competition.
The quick resolution with Disney ensures YouTube TV regains some of its most-watched US channels heading into the holiday sports season, reaffirming its position as a top-tier streaming-TV alternative to cable.
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