Disney and YouTube TV reach carriage deal after 2-week blackout; Disney reportedly lost $4.3 million daily during standoff

Disney and YouTube TV have finally reached a carriage agreement Friday night, ending a two-week blackout that left subscribers without access to Disney-owned channels, including ABC, ESPN, and FX. According to sportico.com, the dispute reportedly cost Disney around $4.3 million per day in lost revenue, highlighting the high stakes of retransmission negotiations in the streaming era.

According to Variety, the agreement also allows YouTube to offer the Disney+ and Hulu bundle through “select YouTube offerings." Disney confirmed that certain networks will be featured in genre-specific packages available on YouTube TV. The new agreement replaces their previous distribution deal, which was signed in December 2021 following a two-day blackout.

Disney and YouTube TV have resolved their two-week dispute just in time for a major college football Saturday on ABC and ESPN, featuring matchups like No. 9 Notre Dame vs. No. 22 Pittsburgh, No. 11 Oklahoma vs. No. 4 Alabama, and No. 10 Texas vs. No. 5 Georgia. The Dallas Cowboys also return to Monday Night Football against the Las Vegas Raiders.


"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 joint statement as quoted by Variety.

"It recognizes the tremendous value of Disney’s programming and provides YouTube TV subscribers with more flexibility and choice. We are pleased that our networks have been restored in time for fans to enjoy the many great programming options this weekend, including college football."

The blackout, which lasted 14 days, surpassed Disney’s previous standoff with DirecTV. YouTube TV’s exclusive NFL Sunday Ticket rights and high customer satisfaction gave it significant leverage, keeping many subscribers despite missing Monday Night Football. The service offered users a $20 credit, potentially totaling $200 million, as reported by sportico.com, if fully claimed, while negotiating new rates and content options, including a sports-focused skinny bundle.

"We’re happy to share that we’ve reached an agreement with Disney that preserves the value of our service for our subscribers and future flexibility in our offers. Subscribers should see channels including ABC, ESPN and FX returning to their service over the course of the day, as well as any recordings that were previously in their Library. We apologize for the disruption and appreciate our subscribers’ patience as we negotiated on their behalf," a YouTube spokesperson said in a statement Friday.