YouTube TV Negotiates Improved Disney Channel Rates Amid Mounting Losses
YouTube TV’s negotiations with Disney are intensifying as the streaming service seeks better rates for Disney channels, particularly ESPN. Reports indicate that while Disney has extended competitive rates similar to those offered to other major providers, YouTube TV is still requesting a lower deal.
YouTube TV Negotiates Improved Disney Channel Rates
Current reports suggest that Disney’s proposed rates align with those provided to companies like Comcast, Charter (Spectrum), and DirecTV. However, YouTube TV is pushing for even more favorable conditions.
Impact of ‘Most Favored Nation’ Clauses
The standoff revolves around “most favored nation” (MFN) clauses. These clauses ensure that larger distributors, like Comcast, receive the best possible rates. If Disney agrees to YouTube TV’s requests, the same rates would likely need to be offered to all providers under existing agreements.
- ESPN’s rate is approximately $10 per subscriber per month for other providers.
- YouTube TV aims to secure a lower rate due to its significant growth potential.
Financial Implications for Disney
Disney is reportedly experiencing substantial financial losses during this negotiation. According to Morgan Stanley, the company is losing around $30 million every week while its channels remain unavailable to nearly 10 million YouTube TV subscribers. This blackout also affects viewership ratings, particularly for high-profile events like Monday Night Football.
Conclusion: The Stalemate Continues
The ongoing negotiation highlights the leverage YouTube TV possesses amidst its impressive growth trajectory. As each week passes without a resolution, Disney faces mounting pressure to address the situation. YouTube TV has offered a $20 credit to its subscribers during this transitional period.
