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ESPN, Disney channels blacked out on YouTube TV in contract dispute

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.

A football player holds a ball.

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.

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Comcast reveals interest in Warner Bros. studios and streamer

NBCUniversal owner Comcast is indeed interested in some of Warner Bros. Discovery’s assets.

On a Thursday call with analysts to discuss third-quarter earnings, Comcast President Mike Cavanagh suggested the Philadelphia giant might bid for certain Warner assets, primarily the Warner Bros. film and television studios and its streaming service HBO Max.

Sources had previously said Comcast was angling to join the Warner Bros. Discovery auction after that company’s board formally opened the process last week. The Warner board has unanimously rejected three unsolicited bids from David Ellison’s Paramount, which has offered $58 billion for all of Warner Bros. Discovery.

Comcast isn’t looking to acquire the entire company or Warner’s large portfolio of cable channels that include CNN, TBS and Food Network. Instead, Cavanagh suggested that Comcast’s interest would be more narrow.

He noted that NBCUniversal and Warner Bros. have compatible businesses. Comcast wants to grow its studios business and its struggling streaming service, Peacock, which lost $217 million during the quarter.

“You should expect us to look at things that are trading in our space … It’s our job to try to figure out if there are ways to add value,” Cavanagh told analysts.

But he added a note of caution, saying the company didn’t feel that a merger was “necessary.”

“The bar is very high for us to pursue any [merger] transactions,” he said.

The Warner Bros. Discovery auction comes amid deep turmoil in the industry. Traditional entertainment companies, including Warner and NBCUniversal, have long relied heavily on cable programming fees to boost profit but consumers have been scaling back on pay-TV subscriptions amid the move to streaming.

To address that challenge, Comcast is spinning off its cable channels, including CNBC, MSNBC, USA and Golf Channel, into a separately traded company called Versant. That process is expected to be complete this year.

As part of the transition, the liberal-leaning MSNBC is changing its name to MS Now and dropping the peacock from its network logo, reflecting its pending exit from NBC, which will remain part of Comcast.

Cavanagh suggested that Comcast would not double down in a declining cable channel business that it was already exiting.

But Warner has other compelling businesses, including HBO and its Warner Bros. film and television studio. The Warner Bros. studio has released a string of movie blockbusters this year, including “Superman” and “A Minecraft Movie.”

Warner and NBCUniversal are investing in their respective streaming services but both lag Netflix, YouTube and Walt Disney Co. in terms of subscribers and engagement. Peacock has 41 million subscribers; the service has lost billions of dollars since Comcast launched it five years ago.

To shore up Peacock and the NBC broadcast network, Comcast has doubled down on sports, including striking a $27-billion, 10-year deal for NBA basketball, a contract that kicked in this month with the new season. (Nielsen ratings for the inaugural NBA game on NBC last week were strong — nearly 5 million viewers).

Most analysts believe that Ellison’s Paramount is in the best position to win Warner Bros. Discovery. They point to the Ellison family’s determination, wealth and political connections. Tech titan Larry Ellison, who is backing his son’s bid, is the second-richest man in the world behind Elon Musk, and President Trump views the elder Ellison as a good friend.

In contrast, Trump has displayed a dim view of Comcast Chairman and Chief Executive Brian Roberts, in large part, because of Comcast’s ownership of MSNBC, which Trump has accused of being an arm of the Democratic National Committee.

The tension has led observers to conclude that Comcast would face a stormy regulatory review process with Trump overseeing the Department of Justice, which would likely perform an anti-trust review of any major transaction for Warner Bros. Discovery.

Concerns about Comcast’s ability to get deals through the Trump administration may be overblown, Cavanagh said.

“I think more things are viable than maybe some of the public commentary [suggests],” Cavanagh said.

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Taylor Sheridan to leave Paramount and will move to NBCUniversal in 2029

One of the biggest players in television is changing teams.

“Yellowstone” creator Taylor Sheridan will leave his longtime home at Paramount and move his overall deal to rival NBCUniversal in 2029, according to a person familiar with the matter who was not authorized to comment.

Sheridan’s deal with Paramount concludes at the end of 2028. Financial terms were not disclosed.

The move is a blow to Paramount, which has focused on wooing high-profile talent to the studio since its takeover by tech scion David Ellison and his Skydance Media.

The media company — which is now angling to buy Warner Bros. Discovery — has shelled out massive sums to acquire sports media rights, keep the iconic “South Park” cartoon and lure filmmakers away from competitors, including “Stranger Things” creators Matt and Ross Duffer and “A Compete Unknown” director James Mangold.

The NBC deal, first reported by Puck, will take effect in 2029.

Sheridan’s universe of “Yellowstone” shows, in particular, has been a key franchise for Paramount. Company executives specifically mentioned the creator’s shows as a “cornerstone” of the Paramount+ streaming service during a luncheon with reporters this summer.

The western-themed show, which debuted as a cable series in 2018, became one of the hottest scripted series on TV, a remarkable turnaround from its early days when “Yellowstone” was passed on by a number of potential homes before landing at Paramount.

The popularity of “Yellowstone” was a boon to Sheridan, leading to spinoffs such as “1923” and other shows from his production company including “Tulsa King,” “Landman” and “Mayor of Kingston.”

Representatives for Paramount and Sheridan did not respond immediately to a request for comment. NBCUniversal declined to comment.

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YouTube TV drops Univision channels in contract dispute

YouTube TV dropped Univision’s Spanish-language networks late Tuesday, a contentious turn in a simmering dispute that has already drawn scrutiny from members of Congress.

“Google’s YouTube TV has refused to ‘Do the Right Thing’ and dropped Univision from its platform — stripping millions of Hispanic viewers of the Spanish-language news, sports, and entertainment they rely on every day,” parent company TelevisaUnivision said in a statement, alluding to its campaign slogan.

The outage began about 7 p.m. PDT, shortly before the federal government shutdown — a newsworthy event that Univision journalists have been covering.

The impasse occurred as another deadline loomed in separate contract talks between YouTube TV and NBCUniversal, raising the possibility of a second blackout. Both Univision and NBCUniversal’s distribution agreements were set to expire Tuesday night. But at the deadline, NBCUniversal granted YouTube TV a short-term extension to allow the two sides to continue working on a new deal.

NBCUniversal owns Telemundo, the other major Spanish-language broadcast network.

Prominent members of Congress, including Sen. Ted Cruz (R-Texas), Sen. Bernie Moreno (R-Ohio) and Rep. Mario Diaz-Balart (R-Fla.), have demanded answers from Google executives, including Chief Executive Sundar Pichai.

A major sticking point was YouTube TV’s proposal to shift the Univision network from its basic plan, which is available to all subscribers, and put the channel on a more expensive Spanish-language add-on package.

Univision cried foul, saying the switch would amount to an 18% fee increase for its Spanish-language viewers. The move would also dramatically cut the revenue that Univision receives because YouTube and other distributors pay fees based on the number of subscribers that have access to a channel.

“Google shouldn’t be abusing its monopoly power by forcing millions of Texans & Americans to pay extra for Spanish-language programming,” Cruz said in a message on X. “That’s not right & it’s not fair.”

YouTube is flexing its market muscle. The Google platforms have become the dominant video service in the U.S., according to Nielsen, with YouTube attracting more than 120 million active daily users.

The YouTube TV service has become a major draw with more than 10 million customer homes that receive its traditional TV channel packages that include NBC, ABC, Fox News and Comedy Central.

A YouTube spokesperson downplayed Univision’s departure, saying the Spanish-language company continues to have a massive following on its main YouTube site with more than “160 million subscribers and billions of views across YouTube, where they generate ad revenue from their content.”

However, on the paid service, YouTube TV, the Spanish-language programming “only represents a tiny fraction of overall consumption,” the YouTube spokesperson said.

The blackout comes a month after YouTube avoided a collision with Rupert Murdoch’s Fox Corp. The two companies hammered out a new distribution deal a few days after the August deadline.

NBCUniversal’s talks with Google have also been rocky. The tech behemoth has expressed a desire to fold Peacock programming onto its YouTube TV platform rather than the current stand-alone service. But NBCUniversal has balked because it has spent billions of dollars building Peacock and it wants to remain the conduit for its customers.

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

In a bid for more sports fans, YouTube TV took over the NFL Sunday Ticket premium sports package from DirecTV, which had been losing more than $100 million a year to maintain the NFL service. YouTube TV offers Sunday Ticket as a base plan add-on or as an individual channel on YouTube.

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Peacock increases subscription price by $3 a month

NBCUniversal’s Peacock is rolling out a $3-a-month price hike for most streaming customers.

Beginning July 23, Peacock Premium will cost $10.99 a month, up from the current $7.99 fee, the company announced Thursday. The Premium Plus option will jump to $16.99 a month, up from $13.99.

Customers can pay $109.99 for an annual plan of Peacock Premium or $169.99 a year for its Premium Plus option.

Peacock is not the first streaming service to raise its fees as the cost of sports and other programming escalates.

Netflix raised its price on most plans in January, with its commercial-free standard plan increasing $2.50 a month to $17.99.

Media companies have been ratcheting up the fees as they struggle to transition from highly profitable but declining business models, including a heavy reliance on pay-TV distribution fees.

This spring, the share of viewers watching programs on streaming services eclipsed viewership of linear channels as traditional television companies increasingly focus on their streaming products.

Comcast-owned NBCUniversal has lost billions of dollars building its Peacock streaming service, which launched five years ago. The payoff remains elusive as the service lags Netflix, Amazon Prime Video and others in terms of subscriber counts and audience share.

Depending on billing cycles, some current Peacock subscribers will see the increases in their bills around Aug. 22.  

NBCUniversal said it would test a new Peacock “Select” tier, which will feature current seasons of NBC and Bravo shows and library titles for the former Peacock Premium price of $7.99 a month or $79.99 a year.

The company touted its programming including “Love Island USA.”

In the television season that begins in September, Peacock will have “Sunday Night Football,” NBA, WNBA, Premier League, Big Ten and the FIFA World Cup soccer championships in Spanish. It will also broadcast the Super Bowl and Milan-Cortina Winter Olympics and Paralympics in February 2026.

Surges in pricing come as consumers have faced several years of inflation and economic uncertainty. People who ditched their pricey cable bundles in favor of cheaper streaming services have found their total monthly subscriptions can add up quickly.

Staff writer Wendy Lee contributed to this report.

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