Subscribers to YouTube TV have lost access to ESPN, ABC, and other Disney channels, as the two companies struggle to negotiate a licensing deal.
Disney stated that the online pay-TV platform, owned by tech giant Google and available only in the US, had refused to pay fair rates for the content, which also includes National Geographic and the Disney channel.
YouTube TV defended itself by claiming that Disney's proposed terms would 'disadvantage our members while benefiting Disney's own live TV products.'
After tense negotiations, the channels vanished from YouTube TV just before midnight on Thursday, marking the deadline for reaching a new deal. This blackout affects roughly 10 million subscribers.
If Disney channels remain suspended for an extended period of time, YouTube TV announced it would offer subscribers a $20 credit.
YouTube and Disney-owned Hulu are among the biggest online TV platforms in the US.
Their stand-off follows similarly contentious talks earlier this year between YouTube and other media companies, which had threatened to limit available shows for YouTube TV subscribers.
Recently, Google reached a last-minute deal with Comcast-owned NBCUniversal to keep shows like 'Sunday Night Football' on YouTube TV and has also secured agreements with Paramount and Fox in recent months.
In separate statements, both Google and Disney indicated they are working towards a resolution to restore Disney content on YouTube TV, despite remaining divided regarding fee structures.
An official Disney spokesperson commented, With a $3 trillion market cap, Google is using its market dominance to eliminate competition and undercut the industry-standard terms we've successfully negotiated with every other distributor. Meanwhile, YouTube responded that Disney's proposal featured 'costly economic terms' likely to drive up prices for customers and limit content options.
