fox corp.

More than 10 million YouTube TV customers lost access to ESPN, ABC and other Walt Disney Co. channels after contract talks broke down Thursday night in one of the largest television blackouts in recent years.

The Disney blackout was set to begin by 9 p.m. Thursday, interrupting “SportsCenter with Scott Van Pelt” on ESPN and “9-1-1: Nashville” and “Grey’s Anatomy” on ABC.

The two TV giants have been wrangling for weeks over carriage fees for Disney’s channels, including FX, Disney Jr. and National Geographic. YouTube TV — now one of the largest pay-TV services in the U.S. — has balked at Disney’s price demands, fueling the dispute that spilled beyond Thursday’s deadline for a new deal.

Without an agreement, Google-owned YouTube TV no longer had legal rights to distribute Disney’s channels.

“We know this is a frustrating and disappointing outcome for our subscribers,” a YouTube spokesperson said in a statement. “We continue to urge Disney to work with us constructively to reach a fair agreement that restores their networks to YouTube TV.”

Should the outage stretch for “an extended period,” YouTube said it would offer subscribers a $20 credit.

The blackout highlights heightened tensions in the television industry.

Programming companies, including Disney, have sought higher fees for their channels to help offset the increased cost of sports programming, including NFL and NBA contracts.

But pay-TV providers such as YouTube have pushed back, attempting to draw a line as customers grow weary of ever-increasing monthly bills.

They don’t want to lose subscribers to a rival service or have them drop their subscriptions. More than 40 million pay-TV customer homes have cut the cord over the last decade, according to industry data.

Disney becomes the latest TV programmer to allege that Google has been throwing its weight around in contract negotiations.

People close to the Burbank entertainment giant accuse YouTube TV of refusing to pay market rates for Disney’s popular channels or accept terms accepted by other pay-TV distributors. Disney has clinched deals with six other pay-TV companies this year, including the nation’s largest channel distributors, Charter Spectrum and Comcast.

“Unfortunately, Google’s YouTube TV has chosen to deny their subscribers the content they value most by refusing to pay fair rates for our channels, including ESPN and ABC,” Disney said in a statement. “Without a new agreement in place, their subscribers will not have access to our programming, which includes the best lineup in live sports – anchored by the NFL, NBA, and college football, with 13 of the top 25 college teams playing this weekend. With a $3 trillion market cap, Google is using its market dominance to eliminate competition and undercut the industry-standard terms we’ve successfully negotiated with every other distributor.”

Since August, Rupert Murdoch’s Fox Corp., Comcast’s NBCUniversal and Spanish-language broadcaster TelevisaUnivision have all complained that YouTube TV was trying to use its clout to squeeze them for concessions now that YouTube TV has become so popular with consumers.

Ultimately, Fox and NBCUniversal negotiated new distribution contracts with Google without having their channels going dark.

Univision wasn’t as fortunate; its channels have been off YouTube TV for nearly a month.

YouTube TV, for its part, has alleged that Disney was the one making unreasonable demands. The San Bruno, Calif.-based platform cited recent agreements it reached with NBCUniversal and Fox..

“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,” YouTube TV said in a statement. “They’re now following through on that threat. … This decision directly harms our subscribers while benefiting their own live TV products, including Hulu + Live TV and Fubo.”

Both Disney’s Hulu service and Fubo compete with YouTube TV by offering packages of many of the same traditional channels.

YouTube has alleged that Disney is using the blackout to steer disaffected YouTube TV customers to Disney-owned streaming services after the Burbank company lost subscribers who canceled following the late-night comedian Jimmy Kimmel’s brief suspension last month.

The two companies’ fraught dealings extend beyond the negotiations.

Last spring, Disney’s former distribution chief, Justin Connolly, abruptly exited to take a similar position at YouTube TV. Connolly had spent two decades at Disney and ESPN and helped devise the company’s distribution strategy. Disney sued to block the move, but a judge allowed Connolly to take his new position — putting him on the opposite side of the negotiation table.

It’s unclear how long the impasse might last.

A separate distribution fee dispute between Disney and DirecTV last year resulted in a 13-day blackout of Disney channels for customers of the El Segundo-based television provider. In 2023, another ugly tussle led to Disney channels being dropped from Charter’s Spectrum service for 10 days.

News and sports fans might quickly notice the absence of their favorite channels.

They could miss college football on ESPN and ABC as well as a “Monday Night Football” game between the Arizona Cardinals and Dallas Cowboys.

ESPN is scheduled to televise a University of Miami-SMU football game on Saturday.

(Jason Allen / Associated Press)

Disney’s ABC stations, including KABC-TV in Los Angeles, and the network’s affiliate stations around the country also will be unavailable on YouTube TV.

That means viewers could miss local newscasts, “Jeopardy,” “Wheel of Fortune,” “Good Morning America” and “Jimmy Kimmel Live.”

YouTube TV launched in April 2017 for $35 a month. The package of channels now costs $82.99.

Walt Disney Co. on Wednesday said it finalized its deal to acquire a majority stake in FuboTV and swiftly combined its Hulu + Live TV business with the sports-focused operation.

The union creates the nation’s sixth largest pay-TV service with nearly 6 million domestic subscribers.

Financial terms were not disclosed.

Similar to competitors DirecTV, YouTube TV and Charter Spectrum, both Hulu + Live TV and Fubo distribute traditional channels including broadcasters ABC, CBS and cable channels Fox News, Bravo and ESPN.

The combined company will be overseen by a nine-member board led by Brad Bird, former chairman of Walt Disney International. The firm will continue to offer Fubo and Hulu + Live TV as separate services available through their respective apps.

Disney’s investment plans were announced in January, after the much smaller Fubo sued Disney and two other media companies over their plans to launch a high-profile streaming joint venture, Venu Sports. Fubo argued the collaboration of Disney, Fox Corp. and Warner Bros. Discovery was “a sports cartel,” one that would crush its business.

A judge agreed based on anti-trust concerns, blocking further development of Venu.

Disney’s deal to acquire 70% of New York-based Fubo ended that litigation.

The combined business will be led by Fubo Chief Executive David Gandler, who co-founded the service, and Fubo’s management team.

“Since Fubo’s founding a decade ago, our vision has always been to build a consumer-first streaming platform defined by innovation and value,” Gandler said in a statement. “Together with Disney, we’re creating a more flexible streaming ecosystem that gives consumers greater choice, while driving profitability and sustainable growth.”

His firm will have access to a $145 million term loan that Disney agreed to provide. Fubo’s ad sales team will join Disney’s sales organization.

The company’s stock will continue to be publicly traded under the FUBO ticker. Existing Fubo shareholders represent about 30% of the company. Shares were up slightly to $3.95 in mid-day trading.

President Trump on Thursday signed an executive order that would allow hugely popular social video app TikTok to continue to operate in the United States.

TikTok’s parent company, ByteDance, had been under pressure to divest its ownership in the app’s U.S. operations or face a nationwide ban, due to security concerns over the company’s ties to China.

Congress passed legislation calling for a TikTok ban to go into effect in January, but Trump has repeatedly signed orders that have allowed TikTok to keep operating in the country.

Under an agreement that Trump said was approved by China’s President Xi Jinping, TikTok’s U.S. operations will be operated through a joint venture run by a majority-American investor group. ByteDance and its affiliates would hold less than 20% ownership in the venture.

About 170 million Americans use TikTok, known for its viral entertaining videos.

“These safeguards would protect the American people from the misuse of their data and the influence of a foreign adversary, while also allowing the millions of American viewers, creators, and businesses that rely on the TikTok application to continue using it,” Trump stated in his executive order.

Trump, who years ago led the push to ban TikTok from the U.S., said at a press event that he feels the deal satisfies security concerns.

“The biggest reason is that it’s owned by Americans … and people that love the country and very smart Americans, so they don’t want anything like that to happen,” Trump said.

Trump said on Thursday that people involved in the deal include Oracle co-founder Larry Ellison, Dell Technologies Chief Executive Michael Dell and media mogul Rupert Murdoch. Vice President JD Vance said the new entity controlling TikTok’s U.S. operations would have a value of around $14 billion.

Murdoch’s involvement would probably entail Fox Corp. investing in the deal, a source familiar with the matter who was not authorized to comment publicly told The Times. Fox Corp. owns Fox News, whose opinion hosts are vocally supportive of Trump.

The algorithms and code would be under control of the joint venture. The order requires the storage of sensitive U.S. user data to be under a U.S. cloud computing company.

White House Press Secretary Karoline Leavitt told Fox News last Saturday that the app’s data and privacy in the U.S. would be led by Oracle.

Ellison is a Trump ally who is the world’s second-richest person, according to Forbes.

TikTok already works with Oracle. Since October 2022, “all new protected U.S. user data has been stored in the secure Oracle infrastructure, not on TikTok or ByteDance servers,” TikTok says on its website.

Ellison is also preparing a bid for Warner Bros. Discovery, the media company that owns HBO, TNT and CNN, after already completing a takeover of Paramount, one of Hollywood’s original studios.

“The most important thing is it does protect Americans’ data security,” Vance said at a press gathering on Thursday. “What this deal ensures is that the American entity and the American investors will actually control the algorithm. We don’t want this used as a propaganda tool by any foreign government.”

TikTok, which has a large presence in Los Angeles, did not respond to a request for comment.

Terms of the deal are still unclear. Trump discussed the TikTok deal with China’s Xi Jinping in an extended phone call last week. Chinese and U.S. officials have until Dec. 16 to finalize the details.

The Associated Press contributed to this report.

Another pair of influencers might be joining President Trump’s effort to preserve TikTok in the U.S.: Rupert and Lachlan Murdoch.

The Trump administration has been working on a deal that would keep the wildly popular social video service operational for millions of Americans. Under a law signed by President Biden, TikTok’s U.S. service must separate from its Chinese parent company, ByteDance, or face going dark.

Congress passed the law out of security concerns over TikTok’s ties to China and worries that the app would give the communist government access to sensitive user data, which TikTok has denied doing.

Trump revealed more details about the plan over the weekend. The president on Sunday told Fox News that people involved in the deal include Oracle Corp. cofounder Larry Ellison, Dell Technologies Chief Executive Michael Dell and, probably, Rupert Murdoch and his eldest son, Lachlan.

“I think they’re going to be in the group, a couple of others, really great people, very prominent people,” Trump said on “The Sunday Briefing” on Fox News. “They’re also American patriots. They love this country, so I think they’re going to do a really good job.”

If the Murdochs were to be involved, it could be through their media company Fox Corp. investing in the deal, according to a source familiar with the matter who was not authorized to comment publicly. Fox Corp. owns Fox News, Fox Business and the Fox broadcast network. Fox News’ opinion hosts are vocally supportive of Trump.

The pending agreement would hand over TikTok’s U.S. operations to a majority-American investor group, White House press secretary Karoline Leavitt told Fox News on Saturday. The app’s data and privacy in the U.S. would be led by Texas-based cloud computing company Oracle, she added.

Oracle’s cofounder and chief technology officer Ellison is a Trump ally who is the world’s second-richest person, according to Forbes. TikTok already works with Oracle. Since October 2022, “all new protected U.S. user data has been stored in the secure Oracle infrastructure, not on TikTok or ByteDance servers,” TikTok says on its website.

Leavitt told Fox News that six out of the seven board seats controlling the TikTok app in the U.S. would be held by Americans and that the app’s algorithm would be controlled by America.

“We are 100% confident that a deal is done,” Leavitt said.

In a Monday news briefing, Leavitt said Trump expected to sign the deal later this week.

ByteDance would retain a less than 20% stake in TikTok U.S. The investor group is still being sorted out, reported CNN, citing a White House official.

The White House, Dell Technologies and Oracle did not immediately return a request for comment. Fox Corp. declined to comment.

TikTok’s future has been uncertain for months since the law was signed. After Biden had signed the 2024 law, ByteDance was initially given a deadline of Jan. 19, which has since been extended several times by Trump. The current deadline is Dec. 16.

Any deal would also need the approval of the Chinese government.

On Friday, Trump suggested on his social media platform Truth Social that China’s president, Xi Jinping, had approved the pact during a call between the two leaders.

Reports cited Xinhua, China’s state-run news agency, which quoted Xi as saying the Chinese government “respects the wishes of companies and welcomes them to conduct commercial negotiations based on market rules and reach solutions that comply with Chinese laws and regulations and balance interests.”

ByteDance in a statement on Friday thanked President Xi and President Trump “for their efforts to preserve TikTok in the United States.”

“ByteDance will work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok U.S.,” the company said.

Trump has said he believes TikTok played a key role in helping him reach younger voters and win the 2024 presidential election. During his first term, he was a prominent voice calling for TikTok to be banned during his broader campaign against China over trade and COVID-19.

Rupert Murdoch’s Fox Corp. has largely stayed on the sidelines of the streaming wars.

That ends next week.

Fox, which owns the most-watched cable news channel Fox News and has TV rights to major sporting events such as the NFL and MLB post-season baseball, has remained committed to the declining pay TV business.

But with 65 million households no longer hooked up to cable or satellite services, the company making its channels available to non-pay TV customers for the first time with Fox One, a new streaming platform that will launch Aug. 21.

“There is a growing audience outside of cable,” said Pete Distad, chief executive of direct-to-consumer for Fox Corp., who previewed the service Thursday at a press briefing at the company’s New York headquarters. “We need to give to give those cord-cutters and cord-nevers access to our content.”

For $19.99 a month, Fox One will provide subscribers with their local Fox TV affiliate that carries a package of NFL games, plus two Fox Sports cable channels. A full year subscription will cost $199.

Fox One will also carry Fox News Media’s channels, which include Fox News, Fox Weather and Fox Business. It will provide replays of Fox programming on demand, with access to current seasons of entertainment programs and DVR capabilities with unlimited storage.

But the main selling point of Fox One will be the company’s array of live events, which include next year’s FIFA World Cup. The service will be promoted with the marketing tag line, “We Live For Live.”

Fox Sports’ Kevin Burkhardt talks with NFL broadcast partner Tom Brady before a 2024 preseason game at So-Fi Stadium.

(Gina Ferazzi / Los Angeles Times)

Sports is the driver for the service. Fox Corp. and Walt Disney Co. have already agreed to offer a package deal for Fox One and the upcoming ESPN direct-to-consumer service also launching next week, for $39.99 a month, a savings of $10. ESPN will charge subscribers $29.99 on its own.

Distad said his company will look at more opportunities to bundle Fox One with other streaming services.

Until now, Fox’s biggest investment in streaming was the acquisition of Tubi, an ad-supported free streaming service that has grown to capture 1% of all U.S. TV viewing according to Nielsen.

Fox Corp. sold its TV and movie studio assets to Disney in 2019, partly because the company did not believe it could compete with deep-pocketed tech firms such as Amazon and Apple, which have spent freely on producing content for their streaming platforms.

But Amazon and Netflix — which acquired NFL rights in recent years — have shown that they can draw large audiences for live sports events, an area where Fox Corp. is already deeply entrenched.

The real test for the new streaming product will be the appetite for Fox News. The conservative-leaning news channel dominates its competitors in the TV ratings. Whether consumers who have cut the cable cord will be willing to pay to stream the channel’s live feed is an open question.

“Nobody knows how many news fans are outside of the pay TV universe,” Distad said.

Distad is encouraged by the reach of Fox News content online after it airs live on the TV network. Fox News scored 1.5 billion views on YouTube and 3.7 billion views on social media platforms in the last quarter.

Fox News Media’s existing streaming channel, Fox Nation, will be offered as a $5 add-on for Fox One for a total of $24.99 a month. The service has documentaries, true crime shows and movies that appeal to the Fox News audience.

Bret Baier, anchor of “Special Report” on Fox News.

(Fox News)

Fox Corp. executives are keeping their expectations low. It’s priced high enough so that the consumer who is currently happy with their current cable TV subscription is not likely to cancel.

But Distad said profit projections are “aggressive” as the platform will not spend money to create original programming. All of the content is being provided from its existing networks.

Investment in original programming has been the main obstacle to profitability for the streaming services that have proliferated in recent years.

Distad said the company is considering putting podcasts on the Fox One platform. Fox Corp. company recently acquired Red Seat Ventures, a media company that specializes in providing business support and technical services for right-leaning podcasts.