While it is easy to assume the current dispute between Disney and YouTube TV is about the selection of Disney-owned channels that were recently dropped from the lineup, we suspect that isn’t the real stumbling block here. Instead, we expect it’s probably about Disney+, ESPN+ (now ESPN Select) and Hulu.
Ever since Charter and Disney agreed their “transformative” deal in late 2023, we’ve seen a number of changes to live TV packages that have genuinely started transforming the market.
What made the deal so transformative at the time was the confirmation that Spectrum TV subscribers would get access to Disney+ and ESPN+ and, announced earlier this year, Hulu.
With those services now priced at $20+ a month, that’s a big chunk of change saved by signing up to one of Spectrum’s packages.
Whether directly or indirectly, that deal between Charter and Disney was followed by a similar ‘transformative’ deal between Disney and DirecTV.
Price Increases And New Plans Followed Disney Deals
The bundling of Disney+, ESPN Select, and/or Hulu with live TV packages has typically been followed by a price increase or the creation of a new package.
Although these services were originally advertised as becoming available at no additional cost, which is technically true, live TV services have made changes soon after.
In the case of Charter, Disney+ became available in January of 2024, and by July of the same year, the cost of Spectrum TV had increased. Likewise, after announcing earlier this year that Hulu was coming to Spectrum TV packages, the price increased again.
As for DirecTV, the company launched three new Genre Packs in February with the Entertainment Genre Pack arriving bundled with Disney+ and Hulu. While not exactly a price increase, a whole new package was created to accommodate a lot of Disney content, and priced accordingly.
Similar to Charter, it was the resolving of DirecTV’s dispute with Disney that paved the way for the creation of these Genre Packs. Not to mention, the possibility that Disney+, ESPN Select and Hulu could be bundled with other DirecTV packages in the future.
Here’s how Disney described this last point in its original agreement with DirecTV announcement back in late 2024.
“Disney’s direct-to-consumer streaming services (Disney+, Hulu, ESPN+) to be included in select DIRECTV packages under a wholesale agreement, and also to be made available on an a la carte basis.”
This is different to the Genre Packs, as they were described as a separate ‘core agreement point’ in the same announcement.
“The opportunity to offer multiple genre-specific options — sports, entertainment, kids & family — inclusive of Disney’s linear networks along with Disney+, Hulu and ESPN+.”
Even Hulu Live TV, which is owned by Disney and includes Disney+, ESPN Select and Hulu, has increased in price recently. The Hulu Live TV increase was timed to coincide with price increases to Disney+, ESPN Select and Hulu.
What Does This All Have To Do With YouTube TV?
With Disney now renegotiating a distribution agreement with YouTube TV, it seems highly unlikely that the topic of Disney+, ESPN Select and Hulu hasn’t surfaced.
From YouTube TV’s perspective, offering one or more of these streaming services as part of its live TV package would not only provide additional value to existing subscribers, but it would also put YouTube TV on more of a competitive level with those other services that have recently agreed ‘transformative’ deals with Disney.
From Disney’s perspective, an agreement including these services would not only mark another distribution deal done for another few years, but it would also further help to drive up subscriber numbers for its standalone streaming services.
Even though this sounds like a win-win situation, someone still has to pay for those subscriptions. Disney is unlikely to just give away subscriptions and that means one of two things are likely to happen.
- YouTube absorbs the cost somehow
- YouTube TV subscribers pay via a price increase
And this is exactly what YouTube has accused Disney of attempting to do during these negotiations.
“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.”
Of course, it also could be the other way around. Maybe it is YouTube TV that wants Disney to include access to these services with its live TV package, and hoping to achieve this without increasing its own costs, the cost to subscribers, or to justify paying a higher cost for the channels subscribers were already receiving under the previous deal.
Along with accusing Disney of trying to “unfairly” increase prices, YouTube has also suggested the current terms offered by Disney puts Disney’s live TV services at a advantage.
“This decision directly harms our subscribers while benefiting their own live TV products, including Hulu + Live TV and Fubo,” YouTube TV previously said.
This part of the statement would make sense if the current deal being offered doesn’t include the additional services, or their inclusion significantly increases the cost.
An increase that could potentially make YouTube TV a more expensive option than the likes of Hulu Live TV, which already includes these services.
While Fubo is an exception here, as it currently doesn’t include Disney+ and/or Hulu, that may change in the near future, following finalization of the Hulu Live TV and Fubo businesses.
YouTube hinted at as much in another part of its recent statement.
“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.“
We have also already seen evidence of Fubo starting to adopt a similar approach to Hulu Live TV. In August, ESPN+ was added to Fubo’s base packages at no additional cost.
If Fubo does start offering Disney’s other streaming services as part of its live TV packages, that would mean those servies are included with packages offered by Charter, DirecTV, Hulu Live TV, and Fubo.
With this in mind, it is easy to see why YouTube TV might feel at a disadvantage if it doesn’t secure a similar deal but continues to carry the Disney-owned linear networks.
While we may be totally wrong here, Disney has also made comments in recent days that could also point to the bundling of these services as a major hurdle.
“Disney is committed to transformative pay TV agreements that drive value to both consumers and distributors,” Disney’s KeepMyNetworks.com says when addressing the dispute with YouTube TV.
If access to these additional services are not a major hurdle then what else could Disney mean when it talks about “transformative pay TV” deals?
As we said at the beginning, the very fact that YouTube TV subscribers have lost access to a variety of popular Disney-owned channels seems likely to have very little to do with those channels, and is more likely to be about Disney+, ESPN Select and Hulu.
While none of this makes the question of whether a deal will be agreed any clearer, it does suggest that any deal done will result in changes to YouTube TV.
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