After nearly two weeks of negotiations, Disney and YouTube TV finally reached a deal to bring Disney-owned channels back to YouTube TV. YouTube TV announced the deal in an email to subscribers on Friday evening, noting that channels like ABC and ESPN are once again available to watch. Additionally, any previously recorded programs from Disney-owned channels on YouTube TV’s cloud-based DVR are accessible once again.
Because many YouTube TV subscribers signed up specifically for ESPN, YouTube TV early last week announced that all subscribers are eligible for a one-time $20 credit. The good news is that the recently inked deal will have no impact on the credit. Subscribers who haven’t yet redeemed the credit can do so by going to the “Updates” tab, which can be found in Membership Settings. From there, the on-screen prompts will allow a user to quickly have the $20 credit applied to their next monthly bill.
In an internal email sent to Disney employees, the company said: “While this was a challenging moment, it ultimately led to a strong outcome for both consumers and for our company, with a deal that recognizes the tremendous value of the high-quality entertainment, sports, and news that fans have come to expect from Disney.”
Read more: 14 Apple TV+ Shows That Are As Good As Or Better Than Anything On Netflix
The story behind Disney and YouTube’s contract dispute
Smartphone with ESPN logo – T. Schneider/Shutterstock
The core disagreement between Disney and YouTube TV, not surprisingly, boiled down to money. Their existing contract expired on October 30 and YouTube TV claimed that Disney was demanding too much in licensing fees. Disney, meanwhile, argued that because YouTube TV’s subscriber base has drastically increased over the past few years, its new contract should reflect the changing market dynamics.
It’s worth mentioning that Disney likely felt confident taking a rather aggressive approach in negotiations because it owns properties that directly compete with YouTube TV, namely, Hulu + Live TV. It’s currently unclear how long Disney and YouTube TV’s new contract is for. It’s therefore plausible that the two entities will be at another impasse in a few years. After all, the current spat was hardly the first between the two. Recall that the two companies endured a similarly contentious contract dispute back in December of 2021, ultimately prompting YouTube TV to remove ESPN, FX, ABC, and nearly a dozen other Disney-owned channels for a short period of time.
Ultimately, it’s nice that Disney and YouTube TV were able to strike a deal that didn’t result in a higher monthly subscription. At least not yet. Over the past few years, YouTube TV has increased the cost of a monthly subscription drastically. Back in December of last year, it upped the subscription price to $83 per month, representing a 14% increase from the previous price. It’s a far cry from the original cost of a YouTube TV subscription, which was priced at $35 per month. Ironically, the cost of a YouTube TV subscription, in some areas, is now more expensive than the pricey cable packages YouTube TV was designed to replace.
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