The unexpected blackout of popular channels ESPN and ABC on YouTube TV understandably prompted immediate backlash from viewers. When both channels went dark on Oct. 30, news surfaced that YouTube TV and Disney were negotiating a new carriage agreement, prompting YouTube TV to remove the two channels from its service. Over a week later, there have been no substantial positive updates, though YouTube TV appears to be trending toward backtracking and adding ESPN and ABC while negotiations continue.
YouTube TV's Proposal Includes 'Immediately Restoring' ABC and ESPN to Disney
This is where negotiations offer at least a glimmer of hope, followed by a bit of confusion. YouTube TV publicly revealed a letter it shared with Disney, which included an offer to "immediately" restore ABC and ESPN to the streaming platform while negotiations continue. However, this letter was posted on Nov. 3, which suggests something must have gone wrong with the idea.
"To truly achieve what is best for our mutual customers, we propose immediately restoring the Disney channels that our customers watch: ABC and the ESPN networks, while we continue to negotiate. Those are the channels that people want," YouTube TV wrote.
"If you agree with our proposal and give us approval, we can get our operational teams together and get these channels live in hours. Let us know how you’d like to proceed."
The (multi) million-dollar question becomes: If this was proposed, why are ESPN and ABC still MIA on YouTube TV? The follow-up question is: why did YouTube TV decide to make the offer and potentially weaken its negotiating stance? There may be an answer to at least the second question.
Here are a few of the other takeaways from YouTube TV's letter to Disney:
- YouTube TV highlights proposal that would have brought Disney's ABC stations back "only for a day."
- It cites that Disney can "continue to livestream news information on the ABC News YouTube page, which has 19.2M subscribers."
- YouTube TV's proposal mentioned above to restore ABC and ESPN networks, which could be live "in hours"—although it never came to fruition.
- YouTube TV says Disney is "publicly resorting to the same tactic" the company relied on in previous disputes.
YouTube TV Poised to Lose a Significant Percentage of Subscribers
While it's far from surprising that, if there's no resolution very soon, viewers will likely look elsewhere for television service, the severity of the pushback became a bit clearer recently. According to a survey done by market research firm Drive Research, roughly 1,100 consumers were asked about the blackouts, with 24 percent saying they've already canceled or intend to cancel their YouTube TV subscription, per Variety.
If there's any doubt about the reasoning for that, the 24 percent highlighted that the decision is because the service "no longer delivers the core content they signed up for."
On top of that, 30 percent of the YouTube TV subscribers said they have either already subscribed or plan to subscribe to ESPN Unlimited or Hulu + Live TV in order to keep sporting events and networks they've lost. In short, viewers know they have other options easily accessible, and roughly one out of four subscribers has already started the process of making a change.
One thing that's certain is that with ESPN's Monday Night Football on the horizon, and fans potentially missing it for a second consecutive week, that could be a breaking point for many subscribers. It'll be interesting to see whether YouTube TV's offer to "immediately" restore the channels during negotiations takes effect before Monday night, or, better yet, if the two sides manage to work out a deal by then.
According to The New York Times, YouTube TV reportedly plans to offer subscribers a $20 credit if the contract dispute continues.
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