A high-stakes battle of big corporations is happening a front. Google’s YouTube TV and The Walt Disney Company are negotiating very closely. Their current distribution agreement is going to be expired soon. This quarrel may influence hundreds of thousands of streaming customers very negatively. The primary argument is about the fees of giving access to Disney’s most attractive channels.
Disney begins firing the first shots of the public warnings towards YouTube TV. The present contract terminates on October 30th at 11:59 PM. In the absence of any new treaty, the disappearance of Disney channels will be the result. This blackout will deprive more than 8 million YouTube TV subscribers of access starting October 31st.
The audience might be left without a buffet of the major network channels. Out of all the channels, ESPN is the one that stands the most to lose. The disappearance will also include all ABC-owned local stations. The other Disney-owned channels such as FX and National Geographic are the ones, too. Only sports fans, however, would be the most affected by this change.
The two companies are at loggerheads about digital rights and fees. Disney is asking for more money from Google for its content. Google on the other hand maintains that what Disney wants is not reasonable. Its acceptance would, according to Google, lead to the increase of subscription costs for everyone. This is a typical example of a new streaming-era kind of carriage fee dispute.
The importance of these kinds of blackouts is that they threaten a lot of live sporting events of major leagues. Hence, fans will not be able to see NFL, NBA, and NHL games. These games are very frequently broadcasted by ESPN and ABC. The timing is affecting the most crucial regular season games. Subscribers have aired their vexation via the web.
Such a situation is not the only one. YouTube TV has recently had close to the same problems with other big names in the media world. Disputes were held between Google and NBCUniversal, Fox Corp, TelevisaUnivision. In these talks, the sides often play the waiting game. It results in a state of anxiety to those who give the companies their money.
With its users, YouTube communicates face to face. The company says it is not sparing any effort in securing a deal that is fair to all parties involved. By keeping the prices affordable the company is apparently trying to please the subscribers. If channels are removed, YouTube will issue a $15 credit. This acknowledges the reduced service value.
Customers are, to a great extent, in the middle of the fight. Moreover, they are only allowed to wait for the companies to reach an agreement. You can obtain the information through reading the blog of YouTube TV. The present case is the most typical of the most fragile streaming content bundles. Who comes out on top will decide the shape of the television negotiations to come.
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