The YouTube TV-Disney Deal: You Have Questions, We Have Answers!

By Phillip Swann
The TV Answer Man – Buy Me a Coffee!

Last night’s announcement that YouTube TV and Disney finally ended its 15-day carriage blackout was welcome news for the streamer’s 10 million subscribers. However, the deal also raised a number of questions such as why did it take so long and what does it mean for the future of YouTube TV. So, let’s play our favorite game:

You have questions, we have answers!

Is the Deal Permanent? Do You Have to Worry About Another Blackout?
No, this is a long-term deal although the companies did not disclose the number of years. It’s likely a minimum of three years and possible four or five. So, you can take a breath. The Disney channels will be on YouTube TV for some time to come.

Why Did It Take So Long?
YouTube TV, which has climbed to roughly 10 million subscribers, nearly double its nearest live streaming rival, wanted to flex its power and demand rates commensurate with top cable and satellite operators such as DIRECTV, Charter’s Spectrum TV and Comcast’s Xfinity TV. The streamer is likely to pass those companies in subscriber numbers over the next few years so it said it should be offered similar terms. Disney balked and so the blackout began. Also on the table: What to do with ESPN’s new Unlimited app and whether YouTube TV subscribers should get it for free, a benefit provided to DIRECTV, Spectrum TV, Hulu, Verizon and Fubo.

So Why Did They Finally Settle?
While the companies disagreed on fees and related issues, they also were experiencing significant damage from the impasse. YouTube TV was forced to offer a $20 credit to subscribers to keep them from defecting (many switched services anyway) and Disney’s ratings suffered (particularly ESPN) because it lost access to those 10 million subscribers. The pain on both sides finally forced the companies to find enough common ground to settle.

Does This Mean YouTube TV Will Raise Its Prices?
YouTube TV has signed three new major carriage deals since last August: Disney, NBC and Fox. We don’t know the terms, but each new agreement likely came with higher carriage fees. Ergo, it’s not a matter of if, but when, YouTube TV will raise its base monthly price of $82.99. Expect something like $89.99 a month before year’s end

What Happened to the ESPN Unlimited App?
Disney agreed to provide YouTube TV subscribers with free and full access to the app which normally costs $29.99 a month. However, there are some new wrinkles: One, YTTV’s subs won’t get this until the end of 2026. Two, YouTube TV will ‘ingest’ the app’s programming into its own service so subscribers won’t have to switch apps to watch it. That’s a big win for YouTube TV because it can be assured its subscribers will stay on its app full time.

Why Do You Have to Wait A Year For the ESPN App?
ESPN has tried to put up some speed bumps to limit the app’s traffic in the first year. For example, Comcast recently signed a new carriage deal with Disney but its subs do not have full access to the app yet. DIRECTV’s streaming subscribers got access when the app launched in August but many of its satellite subscribers have had to wait until this month to get it. ESPN hasn’t explained why but I’m told the network has some technical concerns about getting too much traffic at the same time. By waiting a year, ESPN may also benefit from YouTube TV subscribers buying a subscription to the app during that time.

Will YouTube TV Offer a Cheaper Sports Plan?
The streamer says it plans to offer less expensive genre plans similar to what are now sold by DIRECTV and Fubo. The plans, which will include channels from Disney, such as ESPN, will likely cost in the $50-60 range and include a lineup of 20 or 30 channels in a specific genre such as sports. The streamer did not say when the plans will be introduced, but DIRECTV waited about four months before it launched its sports plan after getting permission from Disney to include ESPN.

Will YouTube TV Get Access to Hulu and Disney Plus?
The company’s press statement says it will be able to offer Hulu/Disney Plus bundles with select packages, but it did not provide details such as which packages and when.

That’s it for now. If you have more questions about the deal, you can ask us at swann@tvanswerman.com.

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