Disney Reaches Agreement With YouTube TV, Ending Major Dispute

Disney has finally reached an agreement with YouTube TV over the distribution of ESPN services, ending a 15-day blackout that wreaked havoc across the media and entertainment industry.

On October 30, the previous agreement between YouTube TV and Disney expired, removing all Disney-affiliated networks from the Google-owned streaming and live-TV service. YouTube TV and other streaming services are required to pay television producers like Disney to host their channels on their external platforms, but they usually negotiate long-term contracts ahead of time to avoid removing availability for customers.

Because of the dispute, all Disney channels were removed from YouTube TV, including ESPN, National Geographic, ABC, FX, and Hulu.

Both sides blamed each other throughout the blackout, which lasted over two weeks, leading to even more frustration among customers.

YouTube TV claimed that Disney was charging exorbitant prices and tried to utilize the dispute to pull subscribers away from YouTube TV, bringing them to the media conglomerate's own Hulu + Live TV. ESPN alone charges YouTube TV $10 per month for each paying subscriber, making it the most expensive service in the country.

Meanwhile, Disney argued that Google had been using their increased leverage to making YouTube TV refuse to pay their proposed rates. Google maintains significant leverage over Disney because of YouTube TV's growing subscriber base, making them a crucial distributor of Disney content.

Unfortunately, many viewers had purchased subscriptions to YouTube TV solely to watch specific games in college football leagues, the NFL, or others, and that money ended up going to waste because of the dispute.

However, a deal has finally been reached, bringing Disney channels back to YouTube TV for customers to enjoy. The new deal also gives subscribers of YouTube TV access to ESPN's new direct-to-consumer application, allowing them to log into the ESPN app with their YouTube TV account, along with a new bundle that includes elements of YouTube TV, Disney, and Hulu.

YouTube TV and Disney have apologized for the dispute, and YouTube TV is now offering all of its subscribers $20 credits to make up for the loss.

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