"Disney channels have been blacked out on YouTube TV for a week because of a dispute over how much the Google-owned TV service is prepared to pay to carry ABC, ESPN, and the media giant's other networks. Disney claims that YouTube TV isn't assigning a fair value to its content, while YouTube argues that paying higher rates would force it to raise prices for its customers."
"Stuck in the middle of the showdown are advertisers who are banking on shows like "Monday Night Football," which airs on ABC and ESPN, as well as college football, and ABC's slate of popular dramas and reality shows, to ensure their campaigns reach big audiences going into the busy holiday shopping period. "While a couple of days might not hurt people, a couple of weeks could, especially coming into the end of the year," said Tim Lathrop, a vice president at the media agency Mediassociates."
"With Disney's channels switched off for YouTube TV's roughly 10 million subscribers, the Mouse House might not be able to deliver on the audiences it had guaranteed to advertisers. Four ad buyers told Business Insider that Disney had yet to provide any details as of Friday about potential compensation plans. "Shockingly little response or urgency from Disney sales," said one of the ad buyers, who requested anonymity to discuss the sensitive business issue."
Disney channels are blacked out on YouTube TV due to a fee dispute over carrying ABC, ESPN, and other networks. Disney says YouTube TV is undervaluing its content, while YouTube TV warns higher fees would force price increases for subscribers. Advertisers depend on NFL, college football, and ABC programming to reach large audiences ahead of the holiday shopping season. The blackout affects about 10 million YouTube TV subscribers and could prevent Disney from meeting audience guarantees to advertisers. Four ad buyers reported that Disney had not provided details on compensation plans, increasing advertiser concern.
Read at Business Insider
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