"YouTube TV's 10 million or so subscribers can't watch ABC and ESPN until the two sides agree on a deal. Disney wants more money to support its heavy investments in a sports rights portfolio that includes the NFL, the NBA, college sports, and the NHL. YouTube is telling customers that paying higher rates would require it to raise prices for the second time in a year."
"Disney now controls three alternatives to YouTube TV: Hulu + Live TV, Fubo, and the ESPN app (which can give consumers access to all of Disney's sports content). Google's position is that Disney can afford to hold out for higher rates since it could benefit if YouTube TV subscribers cancel. "What's changed in the landscape is Disney's launch of the ESPN streaming service," said Joseph Bonner, who covers Disney for Argus Research. "It's logical to assume YouTube TV may be demanding some concessions from Disney, either on price or other issues.""
YouTube TV subscribers currently cannot access ABC and ESPN because Disney and YouTube TV have not reached a carriage agreement. Disney is demanding higher fees to support a costly sports-rights portfolio that includes the NFL, NBA, college sports and the NHL. YouTube warns that accepting higher retransmission costs would force another price increase for subscribers. Disney controls alternative distribution options — Hulu + Live TV, Fubo and the ESPN app — giving it leverage. The launch of an ESPN streaming service shifts negotiation dynamics. Rising sports-rights costs and league pricing decisions contribute to blackout risks.
Read at Business Insider
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