YouTube TV is issuing a $20 credit to its subscribers as a corporate staring contest with Disney over carriage fees stretches into its second week, leaving 10 million customers without access to ESPN and ABC, as reported by The Athletic\ Customers can expect an email with instructions on how to claim the credit, which the company says will be issued by November 12 if the blackout continues.
The blame game: The standoff centers on the per-subscriber rates YouTube TV pays for content. YouTube TV publicly accused Disney of making "unnecessarily aggressive" demands and clinging to an outdated view of television economics. Disney fired back in an internal memo, arguing YouTube TV was seeking "preferential terms below market" and that it could not "allow anyone to undercut our ability" to invest in top content.
Feeling the burn: The blackout is already hitting the numbers. According to reports from Deadline and Front Office Sports, last week’s “Monday Night Football” game saw its audience decline by over 20% from the previous year. The ongoing dispute now threatens the broadcast of Monday night’s Eagles-Packers game.
With both sides publicly entrenched and trading accusations, the $20 credit is a clear attempt by YouTube TV to manage customer frustration and prevent churn as the high-stakes dispute over the future of TV bundles plays out.
Also on our radar: The carriage fee battle isn't the only conflict brewing between the two giants, as Disney is also suing YouTube for poaching a key media executive who was allegedly leading the negotiations. The relationship appears to be souring elsewhere, too, with Google pulling its content from the Disney-founded Movies Anywhere platform. The dispute is further complicated by the fact that Disney is now a direct competitor, controlling streaming distributors like Hulu + Live TV and Fubo.
