ESPN and ABC return to YouTube TV with new multi-year deal

ESPN and other Disney channels have returned to YouTube TV after the companies reached a new multi-year distribution agreement, ending a two-week blackout that left 10 million subscribers without access to live sports programming.

Disney pulled its content from the Google-owned platform on Oct. 30 after the companies failed to extend their previous carriage deal before it expired. The dispute left YouTube TV subscribers unable to watch ESPN’s coverage of major sports leagues and college football during a crucial part of the season.

The cost of the standoff

The blackout had significant financial and viewership consequences for both companies. Disney reportedly lost an estimated $4.3 million per day during the dispute, according to analysis from Morgan Stanley reported by Sportico.

ESPN’s viewership for its premier programming took a noticeable hit during the blackout period. The Monday Night Football game between the Arizona Cardinals and Dallas Cowboys on Nov. 3 drew 16.2 million viewers, representing a 21% reduction from the 20.6 million viewers who watched the week nine game in 2024 between the Tampa Bay Buccaneers and Kansas City Chiefs.

While the daily losses appear substantial, they represent a relatively modest amount compared to ESPN’s overall costs. The network reportedly pays close to $60 million just to broadcast one half of an NFL game, putting the blackout losses in perspective.

Subscribers caught in the middle

YouTube TV attempted to soften the blow for its approximately 10 million subscribers by offering a $20 credit during the blackout. However, the gesture didn’t prevent some customers from dropping the service entirely as they sought alternative ways to access live sports programming.

The dispute left subscribers without access to more than 20 Disney linear channels, including ESPN, ABC and other networks in the company’s portfolio. This meant missing coverage of the NFL, NBA, NHL and college football during key moments in their respective seasons.

Terms of the new agreement

The new multi-year distribution agreement reached on Nov. 14 includes several provisions that expand the relationship between the two companies. Disney’s full linear portfolio will continue to be available on YouTube TV, restoring the channels that disappeared during the blackout.

A significant addition to the deal makes the Unlimited Plan for ESPN’s new direct-to-consumer service available at no additional cost to YouTube TV subscribers. This gives subscribers access to a selection of live and on-demand programming from ESPN Unlimited directly within the YouTube TV platform.

The agreement also allows YouTube to begin offering Disney+ and Hulu bundles alongside its own services, creating new packaging options for customers who want to combine streaming platforms.

What the companies are saying

Disney Entertainment co-chairmen Alan Bergman and Dana Walden, along with ESPN chairman Jimmy Pitaro, released a joint statement about the resolution. They emphasized the agreement reflects their commitment to delivering entertainment while adapting to changing viewing habits.

The executives noted the deal recognizes the value of Disney’s programming while providing YouTube TV subscribers with increased flexibility and choice. They expressed satisfaction that the networks were restored in time for viewers to enjoy weekend programming, particularly college football.

A YouTube spokesperson apologized for the disruption and thanked subscribers for their patience during the negotiation process. The company positioned itself as advocating on behalf of its customers throughout the dispute.

The underlying dispute

The two parties had reportedly disagreed over the fees YouTube TV was paying for Disney’s programming. The streaming platform sought more favorable terms that would reflect its scale as a distributor with millions of subscribers.

YouTube released a statement during the blackout accusing Disney of making a decision that directly harmed subscribers while benefiting the company’s own live TV products, including Hulu + Live TV and Fubo. The statement suggested Disney was prioritizing its competing services over the needs of YouTube TV customers.

Disney countered by accusing Google of using its market dominance to eliminate competition and undercut industry-standard terms. The company noted it had successfully negotiated similar terms with every other distributor, implying YouTube TV was seeking unusually favorable treatment.

Broader implications for streaming

The dispute highlights ongoing tensions in the streaming and television industry as traditional media companies and technology platforms negotiate the value of content. These carriage disputes have become increasingly common as the distribution landscape evolves.

For Disney, maintaining access to large streaming platforms like YouTube TV remains crucial for reaching audiences and justifying the substantial fees it pays for sports rights. For YouTube TV, managing content costs while keeping subscription prices competitive presents an ongoing challenge.

The resolution allows both companies to move forward with an expanded relationship that includes new bundling opportunities and streaming options. The inclusion of ESPN’s direct-to-consumer service in the YouTube TV package represents an evolution in how sports content reaches viewers.

Subscribers can now access the full range of Disney programming they lost during the blackout, with the added benefit of new streaming options through the expanded agreement.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. The author and publication are not registered investment advisors and do not provide personalized investment recommendations.