YouTube TV and Disney are currently locked in a carriage dispute that may see YouTube TV subscribers losing access to a variety of Disney-owned networks. While cost is obviously a factor, it appears the merger between Hulu Live TV and Fubo is also causing issues.
Key Takeaways
- YouTube TV and Disney are in a carriage dispute that could result in YouTube TV losing Disney-owned channels.
- Disney’s merger with Fubo appears to be complicating negotiations, as YouTube TV argues the merger gives Disney more leverage and benefits Hulu Live TV and Fubo Sports.
- YouTube TV suggests Disney’s proposed price hikes would unfairly burden its subscribers, while creating an uneven playing field.
Disney and Fubo announced their merger plans earlier this year, with Disney assuming 70% control of the new joint venture and Fubo the remaining 30%.
While the two live TV services are expected to continue to operate independently, it is probably safe to assume their closer relationship will be beneficial to both in some way.
We’ve already seen this to some degree, following the launch of Fubo Sports, a cheaper sports and broadcast service featuring a channel lineup that includes Disney networks.
According to YouTube TV, the merger is also now proving to be an issue when it comes to its current dispute with Disney.
Naturally, the main contention is the cost. YouTube TV says that Disney wants to increase the cost YouTube TV pays for the affected networks and this will ultimately result in the cost of a YouTube TV subscription increasing as well.
Although this is not necessarily a new or unexpected hurdle in negotiations like this, YouTube TV appears to imply that the higher costs are all the more unacceptable when considering the Hulu Live TV and Fubo merger.
“Unfortunately, Disney is proposing costly economic terms that would raise prices on YouTube TV customers and give our customers fewer choices, while benefiting Disney’s own live TV products – like Hulu + Live TV and, soon, Fubo,” YouTube said in a statement.
Reading between the lines here, it would seem as though YouTube is all the less likely to agree to increased costs when services like Hulu Live TV and Fubo are unlikely to experience similar price increases for the same channels.
Again, although this is not necessarily a new situation, and especially in terms of Hulu Live TV, the addition of Fubo to Disney’s portfolio is new, and vastly different from the landscape in 2019 when Disney and YouTube TV managed to agree their current deal.
While this doesn’t necessarily mean that a deal between the two won’t be agreed, it does suggest there are additional hurdles that will need to be overcome.
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