YouTube TV drops Disney channels after failed carriage deal

Millions of YouTube TV subscribers woke Friday to find ESPN, ABC and more than 20 Disney owned channels removed from the streaming service after the companies failed to reach a new carriage agreement before their contract expired late Thursday night. The blackout took effect around midnight Eastern Time and includes marquee networks that carry live sports and national news.

YouTube TV said negotiations broke down over terms it said would disadvantage its members and benefit Disney’s own live TV products. In a blog post, the service said, "Our contract with Disney has reached its renewal date, and we will not agree to terms that disadvantage our members while benefiting Disney’s TV products." YouTube TV also said the proposed terms would raise prices for its customers and that it was seeking fairer rates and shorter contract terms commensurate with its growth. The company said it will issue a one time $20 credit to subscribers if Disney channels remain unavailable for an extended period.

Disney responded that YouTube TV has refused to pay market rates that other distributors have accepted. A Disney spokesperson said, "Unfortunately, Google’s YouTube TV has chosen to deny their...