YouTube TV drops Univision channels in contract dispute

YouTube TV dropped Univision’s Spanish-language networks late Tuesday, a contentious turn in a simmering dispute that has already drawn scrutiny from members of Congress.

“Google’s YouTube TV has refused to ‘Do the Right Thing’ and dropped Univision from its platform—stripping millions of Hispanic viewers of the Spanish-language news, sports, and entertainment they rely on every day,” parent company TelevisaUnivision said in a statement, alluding to its campaign slogan.

The outage, which came shortly after 7 p.m. PDT, occurred several hours before a potential federal government shutdown — a newsworthy event that Univision journalists have been covering.

The impasse occurred as another deadline loomed in separate contract talks between YouTube TV and NBCUniversal, raising the possibility of a second blackout. Both Univision and NBCUniversal’s distribution agreements were set to expire Tuesday night. Should the NBC channels go dark, YouTube customers also would lose access to Telemundo, the other major Spanish-language broadcast network.

Prominent members of Congress, including Sen. Ted Cruz (R-Texas), Sen. Bernie Moreno (R-Ohio) and Rep. Mario Diaz-Balart (R-Fla), have demanded answers from Google executives, including Chief Executive Sundar Pichai.

A major sticking point was Google’s proposal to shift the Univision network from its basic plan, which is available to all subscribers, and put the channel on a more expensive Spanish-language add-on package.

Univision cried foul, saying the proposed shift would amount to an 18% fee increase for its Spanish-language viewers. The move would also dramatically cut the revenue that Univision receives because YouTube and other distributors pay fees based on the number of subscribers that have access to a channel.

“Google shouldn’t be abusing its monopoly power by forcing millions of Texans & Americans to pay extra for Spanish-
language programming,” Cruz said in a message on X. “That’s not right & it’s not fair.”

YouTube is flexing its market muscle. The Google platforms have become the dominant video service in the U.S., according to Nielsen, with YouTube attracting more than 120 million active daily users.

The pay YouTube TV service has become a top service, drawing more than 10 million customer homes that receive its traditional TV channel packages that include NBC, ABC, Fox News, and Comedy Central.

A YouTube spokesperson downplayed Univision’s departure, saying the Spanish-language company continues to have a massive following on its main YouTube site with more than “160 million subscribers and billions of views across YouTube, where they generate ad revenue from their content.”

However, on the paid service, YouTube TV, the Spanish-language programming “only represents a tiny fraction of overall consumption,” the YouTube spokesperson said.

The blackout comes a month after YouTube avoided a collision with Rupert Murdoch’s Fox Corp. The two companies hammered out a new distribution deal a few days after the August deadline.

NBCUniversal’s talks with Google have also been rocky. The company has expressed a desire to fold Peacock programming onto its YouTube TV platform rather than a stand-alone service. But NBCUniversal has balked because it has spent billions of dollars building Peacock and it wants to remain the conduit for its customers.

YouTube TV launched in April 2017 for $35 a month. The package of channels now costs $82.99.

In a bid for more sports fans, YouTube TV took over the NFL Sunday Ticket premium sports package from DirecTV, which had been losing more than $100 million a year to maintain the NFL service. YouTube TV offers Sunday Ticket as a base plan add-on or as an individual channel on YouTube.