The battle between YouTube (GOOG) and Disney (DIS) is showing no signs of a resolution, leaving YouTube TV’s 10 million subscribers in the dark for another “sports-packed weekend.”
According to a memo from Disney executives Dana Walden and Alan Bergman and ESPN Chairman Jimmy Pitaro published by Deadline, the blackout is likely to continue as “YouTube TV has approached [negotiations with Disney] as if it were the only player in the game.”
“We’ve offered fair terms that are in-line with the more than 500 other distributors that have renewed their agreements since last summer, including the top distributors, who are far larger than YouTube TV. Despite all this, YouTube TV continues to insist on receiving preferential terms that are below market and has made few concessions,” the memo adds.
As a result, in the midst of the busiest time of year in sports, “we are headed into another sports-packed weekend without a deal in place,” the Disney and ESPN execs said.
ABC stations, ESPN, FX, and Disney channels all went dark on YouTube on October 30 following the expiration of the carriage agreement between Disney and YouTube. At issue is the fee increase from Disney (DIS) for the full suite of ESPN channels, local ABC stations, and Disney programming. While YouTube (GOOG) claims the fee increase is “unprecedented” Disney thinks YouTube (GOOG) hasn’t been paying a fair price for the “best talent, creators, and content in the world.”
With the blackout a week old, YouTube TV viewers are now searching for alternatives for their favorite sports programming. According to a survey conducted by Drive Research cited by Variety, 24% of the 1,100 YouTube TV subscribers polled have already cancelled or intend to cancel their subscription because the service “no longer delivers the core content they signed up for.”
Additionally, 30% have subscribed to or plan to subscribe directly to Disney channels like ESPN Unlimited or Hulu + Live TV to retain access to key sporting events. Twenty-two percent plan to log into ESPN and Hulu+ channels using another subscriber’s login credentials, and should the blackout continue, more than three-quarters of current YouTube TV subscribers say they are likely to cancel their subscriptions.