If you’re a fan of binge-watching, heads up: a new spat between entertainment heavyweights Alphabet’s (GOOGL) Google and Disney (DIS) could mean a blackout of Disney channels on YouTube TV.
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Google distributes on YouTube TV live channels from other content providers to its over 10 million subscribers. On Thursday, the tech giant disclosed that it will yank off Disney’s channels such as ABC and ESPN from the service if both companies are unable to reach a “fair pricing” agreement by next Thursday, October 30th.
TV Networks Fight Google over YouTube Payments
This comes as content distribution contract negotiations between the TV giants appear to have hit a snag, as Disney’s existing contract agreement nears its expiration. Google has said that it is working “in good faith” to reach a fair agreement with Disney. However, the tech company noted that it will not give in to terms that put its users at a disadvantage.
“Unfortunately, Disney is proposing costly economic terms that would raise prices on YouTube TV customers and give our customers fewer choices, while benefiting Disney’s own live TV products — like Hulu + Live TV and, soon, Fubo (FUBO),” Google’s YouTube noted in a statement.
In recent weeks, Comcast’s (CMCSA) NBCUniversal and Fox (FOXA) both managed to avert a similar blackout after their demand for better payment terms initially stalled negotiations.
YouTube Remains Streaming Leader
Meanwhile, Google plans to give subscribers a $20 credit if Disney content is removed from YouTube TV for an extended period of time. This is even as Disney has informed its subscriber base via its television channels of a potential blackout on YouTube TV.
This is not the first time both entertainment companies have reached an impasse in their negotiations. In December 2021, Disney’s channels went dark on YouTube TV for several days before a common ground was reached.
According to data analytics firm Nielsen, as of January 2025, YouTube led television streaming in the U.S., accounting for nearly 11% of all viewings, followed by Netflix (NFLX) with 8.6%. Disney, across its channel portfolio, takes about 5% of the cake.
Is Google a Buy, Hold, or Sell?
Turning to Wall Street, Alphabet’s shares currently have a Strong Buy consensus recommendation. This is based on 28 Buys and eight Holds issued by 36 Wall Street analysts over the past three months.
Moreover, the average GOOGL price target of $266 indicates about 5% upside potential from the current level.
