YouTube TV and Disney struck an agreement in December 2022 after a months-long dispute
YouTube TV and Disney ended their contract standoff on December 8, 2022, restoring access to Disney-owned channels that had been blacked out since September. The dispute centered on how much YouTube TV would pay Disney for the right to carry ABC, ESPN, FX, and other Disney networks. YouTube TV agreed to higher fees, which the service then passed along to subscribers through a price increase.
The blackout lasted roughly three months. During that time, YouTube TV subscribers lost access to live sports on ESPN, ABC broadcasts including football games and news, and shows on FX and other Disney channels. The dispute was public and contentious — both sides blamed each other, and subscribers caught in the middle had to decide whether to switch services or wait out the negotiation.
This type of dispute happens regularly in the streaming and cable world. Networks and distributors renegotiate contracts every few years, and when they cannot agree on price, the network goes dark. YouTube TV has had similar blackouts with other networks before and since.
Key Takeaways
- YouTube TV and Disney resolved their dispute in December 2022 after Disney channels went dark for three months starting in September.
- The disagreement was over how much YouTube TV would pay Disney for channels like ESPN, ABC, FX, and others.
- YouTube TV raised its subscription price as a result of the higher fees it agreed to pay Disney.
- Blackouts like this one are common in the streaming industry when networks and services cannot agree on contract terms.
- The agreement restored live sports, news, and entertainment programming that subscribers had lost access to during the blackout.
What caused the blackout in the first place
YouTube TV's contract with Disney was set to expire on September 1, 2022. The two companies could not agree on the price YouTube TV would pay for the right to carry Disney's channels. Disney wanted higher fees; YouTube TV said the increase was too steep. Neither side was willing to budge, so Disney pulled its channels from the service at midnight on September 1.
This left YouTube TV subscribers without access to ESPN during the start of the NFL season, ABC during the Labor Day weekend, and FX shows that were airing new episodes. The timing was particularly painful because September marks the beginning of major sports seasons and new television programming.
YouTube TV had faced similar disputes before — notably with NBC-owned channels in 2021 and with Roku in 2022 — so the company had experience managing blackouts. Still, losing a major network like Disney for three months is significant enough that some subscribers switched to competing services like Hulu + Live TV, Sling TV, or traditional cable.
The terms of the agreement YouTube TV and Disney reached
The exact financial terms of the deal were not made public, as is standard in these negotiations. However, YouTube TV announced that it would raise its base subscription price from $64.99 to $72.99 per month — an $8 increase — effective when ready after the agreement was announced. YouTube TV attributed this increase directly to the higher fees it would now pay Disney.
The agreement restored all Disney-owned channels to YouTube TV, including ABC, ESPN, ESPN2, FX, FXX, Disney Channel, and others. Subscribers regained access to live sports, news broadcasts, and entertainment programming. The deal also included terms for future negotiations, though those specific details remain confidential.
YouTube TV also offered existing subscribers a one-month credit as a gesture of goodwill for the inconvenience of the blackout. New subscribers who signed up during the blackout period received a discount on their first month.
How this affected YouTube TV subscribers
The when ready impact was the restoration of channels that had been missing for three months. Subscribers who had stuck with YouTube TV through the blackout suddenly had access to ESPN again, which mattered most to sports fans who wanted to watch NFL, college football, and other live events.
The longer-term impact was the price increase. YouTube TV's base plan went from $64.99 to $72.99 per month, making it one of the more expensive live TV streaming services. This price hike applied to all new subscribers and to existing subscribers when their billing cycle renewed after the agreement.
Some subscribers who had switched to other services during the blackout did not return, even after Disney channels came back. Others who were on the fence about the cost decided to cancel rather than accept the higher price. YouTube TV's subscriber count took a hit in the months following the dispute, though the service has remained one of the largest live TV streaming options.
Why these disputes happen so often in streaming
Networks and streaming services operate under contracts that expire and must be renegotiated. Every few years, Disney, NBC, Paramount, and other major networks sit down with YouTube TV, Hulu + Live TV, Sling TV, and cable companies to hammer out new deals. The networks want higher fees because their content is valuable and they have leverage. The services want to keep costs down to stay competitive on price.
When neither side gives ground, the network goes dark. This is a negotiating tactic — the network knows that subscribers will pressure the service to pay up, and the service knows that losing a major network will drive subscribers away. The blackout is the leverage both sides use to force a deal.
The YouTube TV and Disney dispute was not unusual in this regard. Hulu + Live TV has had blackouts with Disney and other networks. Sling TV has faced similar disputes. Even traditional cable companies deal with these standoffs regularly. The difference is that cable companies have been doing this for decades and subscribers expect it, while streaming services are still relatively new and subscribers sometimes find the experience frustrating.
What happened to YouTube TV's price after the Disney deal
YouTube TV's base plan price of $72.99 per month has remained stable since December 2022, though the service has added optional add-ons and premium tiers. The company introduced a 4K add-on for an additional fee and offers a more expensive plan with additional channels.
The $8 increase was substantial enough that some industry observers questioned whether YouTube TV could maintain its subscriber base at that price point. Competing services like Hulu + Live TV and Sling TV were priced lower, though they offered fewer channels or different channel lineups. YouTube TV's price increase made it less of a bargain compared to traditional cable, which was already a criticism of the service.
YouTube TV has not announced another major price increase since the Disney deal, though the company has adjusted pricing for new features and add-ons. The service continues to be one of the most expensive live TV streaming options, but it also includes a large channel lineup and features like cloud DVR storage that appeal to cord-cutters who want a cable-like experience.
How to know if YouTube TV is still the right choice for you
If you stayed with YouTube TV through the Disney blackout or signed up after the dispute ended, the service offers a stable channel lineup that includes major networks, sports, and entertainment programming. The price is high compared to some competitors, but the channel selection and features justify the cost for some viewers.
If you switched to another service during the blackout and have been happy with it, there is no reason to switch back unless you specifically need channels that only YouTube TV carries in your area. Hulu + Live TV, Sling TV, and other services have their own strengths and weaknesses, and the best choice depends on which channels matter most to you.
The Disney dispute showed that blackouts are a real risk with any streaming service. If live sports or specific networks are essential to you, it is worth considering a service with a strong track record of keeping those channels available, or having a backup option ready in case a blackout happens again.
Frequently Asked Questions
Did YouTube TV lose subscribers because of the Disney blackout?
Yes. YouTube TV's subscriber count declined in the months after the blackout ended, though the company did not release exact figures. Some subscribers switched to competing services and did not return, while others canceled due to the price increase that followed the Disney deal.
Could the same thing happen again between YouTube TV and Disney?
Yes. Contracts expire and must be renegotiated periodically. If YouTube TV and Disney cannot agree on terms in the future, another blackout is possible. However, both companies likely want to avoid the public relations damage and subscriber loss that the 2022 dispute caused.
Why did YouTube TV raise its price instead of absorbing the higher Disney fees?
YouTube TV is a business that needs to maintain profit margins. When the cost of carrying Disney's channels increased, the company passed that cost along to subscribers rather than cutting into its own revenue. This is standard practice in the cable and streaming industry.
Is YouTube TV still worth the price after the increase?
That depends on which channels you watch and how much you value live TV. At $72.99 per month, YouTube TV is expensive, but it includes a large channel lineup, cloud DVR storage, and the ability to stream on multiple devices. If those features matter to you, it may be worth the cost. If you only watch a few channels, a cheaper service like Sling TV might be a better fit.
What other blackouts has YouTube TV had?
YouTube TV has had blackouts with NBC-owned networks in 2021, with Roku in 2022, and with other networks at various times. These disputes are common in the streaming industry, though they are usually resolved within days or weeks rather than months.