YouTube TV to Issue $20 Credit to Subscribers Amid Disney Channel Dispute
When the Disney nets were first pulled from YouTube TV, the internet company said that if ESPN, ABC local stations and Disney’s other channels were unavailable for “an extended period of time,” it would offer subscribers a $20 credit — and now those credits are about to arrive.
In a bid to appease disgruntled customers, YouTube will begin issuing eligible YouTube TV customers a $20 credit starting on Sunday, Nov. 9, if there is still no deal with Disney to restore the channels. YouTube will send YouTube TV subscribers an email with instructions on how to apply the one-time $20 credit to their next billing statement. All credits will be issued by Wednesday, Nov. 12.
YouTube TV subscribers have been unable to watch ESPN, ABC local stations and other Disney networks, since they were removed from the lineup shortly before midnight ET on Oct. 30.
If Disney agrees to a deal, channels will be restored “in a matter of hours,” according to YouTube, well ahead of the NFL “Monday Night Football” Eagles-Packers game on Nov. 10, set to air on both ABC and ESPN.
“We know that subscribers are frustrated with the disruption and we continue to urge Disney to work with us constructively to reach a fair agreement that restores their networks to YouTube TV as soon as possible,” YouTube said on Saturday. Regarding the negotiations, YouTube said, “Instead of negotiating in good faith with us to reach a deal, Disney continues to resort to their playbook.”
YouTube TV, which is available only in the U.S., costs $82.99 per month for the base subscription plan.
The disagreement centers on price: Google claims Disney has demanded an unprecedented fee increase while Disney says the tech giant has been “refusing to pay fair rates for our channels.”
On Friday, three top Disney execs — Disney Entertainment co-chairs Dana Walden and Alan Bergman, and ESPN chairman Jimmy Pitaro — sent a memo to staffers indicating that the two sides were still not close to reaching a deal renewal. “When will ESPN and ABC be back on the service? We wish we could give you that answer today, but unfortunately, we are headed into another sports-packed weekend without a deal in place,” the execs wrote.
The Disney brass claimed the company has “offered fair terms that are in-line with the more than 500 other distributors that have renewed their agreements since last summer, including the top distributors, who are far larger than YouTube TV.” (In October, Disney quietly reached a deal renewal with Comcast.) “Despite all this, YouTube TV continues to insist on receiving preferential terms that are below market and has made few concessions,” Walden, Bergman and Pitaro said in the memo.
