Talks between YouTube TV and Disney about fees broke down on Thursday ahead of a deadline, with each company publicly blaming the other.
An estimated 10 million YouTube TV subscribers lost access to ESPN, ABC, and other Disney-owned channels on Thursday night after contract renewal negotiations between the two companies broke down.
Both sides publicly blamed each other for the blackout.
In a statement, YouTube urged Disney to “work with us constructively to reach a fair agreement.” Disney, in response, accused YouTube — which is owned by Google — of “using its market dominance to eliminate competition and undercut the industry-standard terms we’ve successfully negotiated with every other distributor.”
YouTube TV announced it would give subscribers a $20 credit if Disney’s content remains unavailable for an “extended period.” According to Nielsen, ESPN is the top cable network on YouTube TV for adults aged 18 to 49.
YouTube said Disney’s proposed terms would force it to raise subscription prices, and pointed out that removing Disney content from its platform would potentially benefit Disney’s own streaming services, including Disney+, Hulu, and the new ESPN app.
