Disney and YouTube TV have reached a distribution deal, ending a pitched battle that lasted 15 days, frustrating consumers and fascinating the media industry.
The multi-year deal includes carriage of ABC and ESPN, as well as a portfolio of other networks. The unlimited tier of ESPN’s new direct-to-consumer streaming service will also be included at no additional cost to YouTube TV’s 10 million subscribers. The Disney+ and Hulu “duo bundle” will also be available in “select YouTube offerings,” the companies said, and some networks will also be part of genre-specific bundles.
Genre packages and access to the new streaming service ESPN, launched in August as a major hedge against cord-cutting, had been on the priority list of Disney negotiators for months. While the executives’ comments largely focused on disputes over pricing and fair market value, one sticking point in the negotiations – ingestion – reflected the complexity of the streaming era.
The new pact includes some form of ingestion, according to a person familiar with the details, but not in the YouTube channel store. Content from ESPN Unlimited will be integrated into the YouTube TV user experience, allowing subscribers to view it in the app instead of having to go into the ESPN app. Allowing YouTube to ingest content into its channel store poses a more existential threat to programmers in the long run, as the tech giant would control the data and make running a direct-to-consumer business unviable.
“This new agreement reflects our continued commitment to delivering exceptional entertainment and evolving with the way audiences choose to watch,” said Disney Entertainment Co-Chairmen Alan Bergman and Dana Walden and ESPN Chairman Jimmy Pitaro. “It recognizes the tremendous value of Disney programming and provides YouTube TV subscribers with more flexibility and choice. We are pleased that our networks have been restored in time for fans to enjoy the many exciting programming options this weekend, including college football.
YouTube TV, which has become a leading pay TV provider in the United States since its launch in 2017, will restore programming, including titles stored on cloud DVRs, from Disney over the next 24 hours. The restoration arrived in time for viewers to tune in to a roster filled with college football and Monday Night FootballThe Dallas Cowboys-Las Vegas Raiders game. Lasting 15 days, the power outage was Disney’s longest on record and threatened to extend the college football drought to a third weekend in the middle of the season.
“We are pleased to announce that we have reached an agreement with Disney that preserves the value of our service for our subscribers and the future flexibility of our offerings,” a YouTube spokesperson said in a statement. “We apologize for the disruption and appreciate our subscribers’ patience while we negotiate on their behalf. »
