NBCUniversal and YouTube TV have agreed to a short-term extension, keeping NBCU’s portfolio of channels on the platform as the two sides continue negotiating a new carriage agreement.
According to several reports, the deal avoids a blackout that was set to begin after their previous contract expired at midnight ET on Tuesday. There has been no word on how long the short-term arrangement will last.
In a statement provided to Deadline, YouTube TV said, “We’ve reached a short-term extension to avoid disruption to our service while we work toward a new agreement with NBCUniversal. We appreciate our subscribers’ patience while we negotiate on their behalf.”
The temporary truce comes at a moment of heightened pressure for YouTube TV. Earlier in the day on Tuesday, TelevisaUnivision networks, including Univision, went dark on the service after that company’s contract expired.
At the same time, Disney and ESPN are also approaching a renewal deadline with YouTube TV in just a few weeks.
The YouTube TV service surpassed 10 million subscribers earlier this year. Making it the No. 4 pay-TV operator in the U.S., trailing only Charter, Comcast and DirecTV. Unlike those legacy giants, however, YouTube TV is growing while the top three are steadily shrinking.
Google’s presence looms over negotiations. The platform is backed by a parent company with a market cap of roughly $3 trillion. Media executives have long argued that makes YouTube TV less willing to compromise on rates. The service has not hesitated to increase prices either. Raising its monthly subscription fee by $18 over the past two years.
NBCUniversal had spent the past week warning viewers of a potential blackout. They began running on-screen crawls and blasting out messages across social platforms. The company accused YouTube TV of once again playing hardball in carriage talks. That perception is not without merit. Over the past year, YouTube TV has nearly walked away from deals with Paramount and Fox, only to reach agreements after negotiations spilled into the public eye.
One sticking point in the NBCU dispute involves YouTube TV’s push to “ingest” NBC’s streaming programming into its platform rather than simply offering access to Peacock as a separate add-on.
For now, subscribers won’t lose access to NBCUniversal programming. But with Univision already off the platform and ESPN’s renewal deadline looming, YouTube TV’s aggressive approach to negotiations is likely to remain a flashpoint in the pay-TV business as the industry continues to shift.
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