ESPN, ABC and other Disney-owned channels are returning to YouTube TV after the streaming bundle and The Walt Disney Co. reached a new carriage agreement, ending a 15-day blackout that cut off millions of viewers, according to Los Angeles Times.
The companies said Disney channels and local ABC stations are being restored for YouTube TV’s roughly 10 million subscribers under a new distribution deal that replaces the agreement that expired Oct. 30. Financial terms were not disclosed.
“This new agreement reflects our continued commitment to delivering exceptional entertainment and evolving with how audiences choose to watch,” Disney Entertainment Co-Chairmen Alan Bergman and Dana Walden and ESPN Chairman Jimmy Pitaro said in a statement. They added that the deal recognizes the value of Disney’s programming and restores key networks in time for a busy weekend of college football.
The blackout lasted longer than last year’s 13-day standoff between Disney and DirecTV. At the center of the clash was a familiar fight over rising programming fees. Disney pushed to maintain and increase revenue to support its content pipeline, streaming expansion and expensive sports rights deals for leagues such as the NFL and NBA, while YouTube argued that ratings declines for some channels did not justify higher costs, Los Angeles Times reported.
The dispute unfolded against a broader industry backdrop of cord-cutting and shrinking pay-TV bundles. YouTube TV launched in 2017 at $35 a month but now charges $82.99, even as distributors try to hold down prices. ESPN is still the most costly basic cable channel, costing about $10 per subscriber. This shows how sports rights are still putting pressure on both media businesses and consumers.
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