Disney Memo Suggests YouTube TV Deal Is Far From Close, Leaving Subscribers Without Access To Popular Channels

A number of Disney-owned channels were dropped from YouTube TV late last night as part of a carriage dispute. While disputes are nothing new, a memo by Disney executives to employees paints a grim picture and suggests a deal for the return of the channels is far from close.

The Disney memo from Alan Bergman, Dana Walden, and Jimmy Pitaro (published by Variety) states it was YouTube TV that ultimately decided to pull the channels from the lineup, and before the midnight expiration of the current deal.

Timing-wise, this marries with a statement update issued by YouTube at 8:15pm PT last night. However, in that YouTube TV statement, YouTube said it was Disney who pulled the channels.

“Last week Disney used the threat of a blackout on YouTube TV as a negotiating tactic to force deal terms that would raise prices on our customers. They’re now following through on that threat, suspending their content on YouTube TV,” the YouTube TV statement reads.

Regardless of the blame, both parties had previously made clear that they were committed to resolving the issue. While the new memo from Disney reiterates this commitment, it also suggests Disney has been somewhat caught off-guard by the actions of YouTube.

Firstly, the memo suggests the channels were removed from YouTube TV without any advance notice to Disney. Secondly, YouTube not only cut off access to live channels but also deleted all previously recorded content.

Disney argues these decisions are part of a heavy-handed approach YouTube TV has taken to negotiations in general.

“YouTube TV and its owner, Google, are not interested in achieving a fair deal with us. Instead, they want to use their power and extraordinary resources to eliminate competition and devalue the very content that helped them build their service,” the Disney memo explains.

This is actually something we’ve heard before. During YouTube TV’s now-resolved dispute with NBCUniversal, a report suggested YouTube TV was taking more of a hardline in negotiations, and using its market power to secure deals.

Similar sentiments were made by the NBCUniversal Telemundo Chairman Luis Fernández in September, with Fernández suggesting Google was attempting to make an “example” out of the network.

Likewise, in a separate open letter by Daniel Alegre earlier this month, the TelevisaUnivision CEO accused Google of “abusing its market power”.

While NBC did eventually agree a deal with YouTube, TelevisaUnivision didn’t, resulting in the loss of the Univision network.

Also earlier this month, YouTube TV subscribers lost access to Monumental Sports Network, following yet another dispute that was never resolved. According to Monumental Sports Network, it had made several attempts, including offering significant economic concessions, to maintain distribution on YouTube TV.

Although the loss of Disney channels is likely to be far more problematic for YouTube TV, there seems to be a building consensus that YouTube is playing hardball nowadays in negotiations. More to the point, YouTube TV is unlikely to give in anytime soon.

Disney’s memo also seems to suggest Disney has no plans to give in either.

“The bottom line is that our channels are extremely valuable, and we can only continue to program them with the sports and entertainment viewers love most if we stand our ground against tactics that threaten the integrity of our business and the value of our creative work,” Disney’s memo reads.

With Disney seemingly assuming a ‘stand our ground’ approach, and YouTube TV apparently adopting a more active and aggressive approach in general, it is hard to see the dropped channels making their way back to YouTube TV’s lineup anytime soon.