YouTube TV subscribers lost access to Disney-owned networks including ESPN, ABC and FX late on Thursday night after negotiations between the two companies over carriage fees collapsed.
The blackout hit roughly 10 million homes shortly before an 11:59 p.m. ET deadline, cutting off major sports and entertainment programming as the companies traded blame for the breakdown.
YouTube TV, owned by Alphabet’s Google, said Disney’s demands would force price increases on consumers and divert viewers toward Disney’s own streaming services, including Disney+ and Hulu.
Disney countered that Google was using its vast resources to undercut the entertainment giant’s agreements with other distributors, saying it had sought “fair market terms” in line with industry standards.
A key sticking point in the dispute, according to people familiar with the talks, was the cost of Disney’s live sports rights, including ESPN’s coverage of the NFL, NBA and college football, which have become increasingly valuable as cord-cutting reshapes the TV landscape.