Last month, Disney-owned channels went dark on YouTube TV when the two companies were unable to make a deal to keep the channels live on the platform. The blackout lasted for two weeks before a deal was made on November 14.
After the deal was done, more details came out, with sources sharing information about what each side asked for and where concessions were made. One area where YouTube TV saw a win was gaining the flexibility to create less expensive themed bundles that incorporate Disney’s channels. The provision will allow YouTube TV to develop a skinny sports bundle including Disney-owned channels like ESPN, ESPN2, ESPNU, ESPNews, ACC Network, SEC Network, and ESPN Unlimited.
However, there was another area where YouTube TV didn’t get what it wanted – pricing. According to a report from CNBC Sports reporter Alex Sherman, YouTube TV asked for “sliding-scale rate improvement” that would revisit the rates Disney charges as the streaming platform’s subscriber number grows, as Google believes its live TV streaming service will surpass competitors in subscriber numbers during the multiyear agreement. Instead, Disney locked in the standard rates that other distributors are paying, based on YouTube TV’s current subscriber count.
Sherman also reported that with the deal, YouTube TV will pay Disney per subscriber for the “ingestion of ESPN Unlimited” on YouTube TV. That means that YouTube TV had to negotiate a price per subscriber fee for ESPN Unlimited just like it did for each of Disney’s other channels.