Stalemate reached in negotiations over YouTube TV subscription fees, Walt Disney Company warns of potential content removal by end of month.
Disney warned that by the end of this month, YouTube TV may lose Disney-owned channel services.
The Walt Disney Company (DIS.US) has warned that if a new agreement is not reached before 11:59 pm Eastern time on October 30th, major television networks such as ESPN, ABC, etc. may be removed from Alphabet Inc. Class C's (GOOGL.US) YouTube TV platform at the end of this month. The dispute over new subscription fees is ongoing, with Walt Disney Company requesting an increase in fees.
This puts nearly 10 million YouTube TV subscribers at risk of losing access to major Walt Disney Company-owned network content, including local ABC channels, all ESPN channels, FX, National Geographic, Walt Disney Company channels, Walt Disney Company children's channels, Freeform, etc. Walt Disney Company has started notifying YouTube TV customers of the potential for service interruptions.
YouTube TV has expressed concerns about increasing costs for users. A spokesperson for YouTube TV said in an official statement, "Unfortunately, the Walt Disney Company is proposing a set of expensive economic terms that will result in YouTube TV users paying higher fees and limiting our users' choices."
Currently, YouTube TV subscribers pay $72.99 per month. In the event of a blackout, prices will increase significantly as the relevant companies negotiate from a stronger position. YouTube TV states that if Walt Disney Company's networks are unavailable for an extended period, they will provide a $20 credit to subscribers.
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