YouTube TV and Disney are in a tricky fight over pricing. Recent news hints that YouTube TV wants to pay even less than what Disney already offers to major providers like Comcast and DirecTV. This standoff is frustrating many subscribers who are missing channels, especially during events like Monday Night Football.
A report from Puck reveals that Disney is ready to charge YouTube TV the same rates as its other partners. Currently, these partners pay about $10 for each subscriber per month for ESPN. However, YouTube TV seems to be asking for a better deal, which could complicate things for everyone else. If Disney agrees, it might have to offer similar rates to its other partners due to “most favored nation” clauses, ensuring major distributors always get the best rates.
The challenge is that YouTube TV is growing fast and wants an even better rate than its competitors, potentially leading to widespread rate adjustments across the board.
The impact of this dispute is hitting Disney hard. According to Morgan Stanley, Disney is losing about $30 million each week while its channels are unavailable to around 10 million YouTube TV subscribers. This situation not only affects the companies but also frustrates fans who are left without access to popular content.
As the deadlock continues, the focus is on whether Disney can handle this loss longer than YouTube TV can go without the channels. So far, YouTube TV has offered its subscribers a $20 credit, but the resolution is still uncertain.
