There’s potential new life in the negotiations between YouTube TV and Disney that could soon bring ESPN and ABC back to millions of frustrated subscribers.
Sources tell The Athletic that the two companies have made progress, though disagreements over the value of Disney’s non-sports networks — including FX, Freeform and National Geographic — remain a sticking point.
The blackout, which began October 30, has left roughly 10 million YouTube TV subscribers without access to Monday Night Football, college football, and other ESPN programming during one of the busiest stretches of the sports calendar.
The timing could prove critical. Disney will release its quarterly earnings Thursday afternoon. Providing added incentive for both sides to reach an agreement before the company faces investor scrutiny.
Neither Disney nor YouTube TV would comment on the current state of negotiations.
Disney’s carriage agreements typically come as a bundled package combining ESPN’s portfolio. Also its ABC-owned affiliates, and entertainment channels such as FX, Freeform, and Disney Channel. Distributors have long complained that the bundle forces them to pay for lower-rated networks that viewers rarely watch.
Disney, meanwhile, insists those networks are offered at a discount within the package.
Earlier this week, Puck reported that YouTube TV is attempting to negotiate rates for Disney’s content that are lower than the three largest pay TV distributors in the country: Comcast, Charter, and DirecTV. Disney sees this as untenable. As agreeing to give YouTube TV a lower rate would trigger “Most Favored Nation” clauses in its other contracts. That would force the company to give the same lower rate to the other distributors.
In a sign that talks have escalated, The Athletic is reporting top executives have reportedly stepped in. Google CEO Sundar Pichai and Disney CEO Bob Iger are now said to be directly involved. Alongside Disney Entertainment co-chairs Dana Walden and Alan Bergman and ESPN Chairman Jimmy Pitaro.
Adding another layer of intrigue. YouTube TV’s global head of media and sports, Justin Connolly, has been recused from the discussions due to his prior role at Disney. Connolly, who departed Disney earlier this year after legal wrangling over his contract. He is required to sit out negotiations involving his former employer.
Meanwhile, YouTube TV has attempted to keep customers appeased, offering a $20 credit to subscribers impacted by the outage.
Even the federal government has taken notice. Earlier today, FCC Chair Brendan Carr weighed in on X, urging both sides to resolve the impasse: “People should have the right to watch the programming they paid for — including football. Get it done!”
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