As the dispute between Disney and YouTube TV continues, Disney recently sent out a memo to employees to provide an update on the situation. According to the memo, Disney tried all it could to secure a deal, including a cheaper deal overall and flexible plans.
Key Takeaways
- Disney claims it offered YouTube TV a cheaper deal than what it was paying overall under the previous agreement.
- Disney also says it offered YouTube TV flexible programming options, including genre-specific packages like sports, entertainment, and kids.
- Despite YouTube TV allegedly rejecting these offers, Disney says it remains committed to working with YouTube TV to reach a resolution.
YouTube TV subscribers lost access to Disney-owned channels on Oct. 30.
According to a previous memo from Disney, YouTube TV actually pulled the disputed channels and content hours earlier than the initial deadline, and as part of a more aggressive approach to negotiations in general.
According to the latest memo, published by various outlets including The Hollywood Reporter, the channels and content were pulled in spite of Disney making some major concessions.
Firstly, Disney says it offered YouTube TV a deal “that would cost less overall” than the rate it was previously paying. A price, the memo says, would have resulted in “real savings that YouTube TV could pass along to its customers.”
This is contrary to what YouTube TV has previously alleged. According to YouTube TV, Disney wanted to increase the cost YouTube pays and this would have inevitably resulted in subscribers paying more for their live TV package.
In addition, or in replace of (it remains unclear based on the wording of the memo), Disney also says it offered YouTube TV the option of “innovative, bespoke programming packages.”
Packages that would have allowed YouTube TV to offer plans focused on specific genres, including sports, entertainment, and kids.
This is not dissimilar to the deal Disney struct with DirecTV last year, which resulted in the launch of DirecTV’s Genre Packs, all of which are priced cheaper than the company’s main ‘Signature Package’ live TV plans.
According to the memo, these bespoke programming packages would have provided YouTube TV subscribers with “greater choice and value” in general.
In spite of the option of a cheaper overall deal and/or bespoke packages, Disney says YouTube TV continues to seek even more favorable terms.
“Despite all this, YouTube TV continues to insist on receiving preferential terms that are below market and has made few concessions,” the memo reads.
While the memo paints an even bleaker picture than the previous memo, Disney still insists it will continue to work with YouTube TV in an attempt to “find common ground.”
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