Disney's deal with YouTube TV shows how streamers are increasingly flexing their muscle

By Lukas I. Alpert

An agreement to bring Disney programming back to YouTube TV subscribers after a two-week blackout shows how the center of gravity has shifted from linear television to streaming

YouTube has become a dominant force in the media landscape and has been using its position to negotiate tougher deals with its rivals - including Disney, with which it settled a two-week-long blackout on Friday.

With the eyeballs, goes the power.

The two-week-long dispute over carriage fees that left YouTube TV's 10 million subscribers unable to watch any Disney programming is now over, but its impact on the media landscape may be permanent.

The impasse was yet another signal of the shifting center of gravity in the media world - one moving away from linear-television stalwarts like the Walt Disney Co. (DIS), and toward emerging streaming giants like Alphabet Inc.'s (GOOGL) (GOOG) YouTube TV and others players.

The financial terms of the deal were not disclosed, but Disney said that the result would be a return of all of its programming to YouTube TV - including ESPN networks, ABC, Disney-branded channels, FX and National Geographic.

Additionally, YouTube TV subscribers will get access to ESPN's new premium streaming service at no additional cost.

"This new agreement reflects our continued commitment to delivering exceptional entertainment and evolving with how audiences choose to watch," Disney Entertainment co-Chairmen Alan Bergman and Dana Walden and ESPN Chairman Jimmy Pitaro said in a joint statement late Friday. "It recognizes the tremendous value of Disney's programming and provides YouTube TV subscribers with more flexibility and choice."

The lengthy programming blackout on YouTubeTV represented a modern twist on an old kind of fight. For years, channels would temporarily disappear from cable services amid disputes over carriage fees, or what carriers pay television companies for the rights to show their programming.

But the breakdown in negotiations between Disney and YouTube TV shows that streaming is now the prime battleground for control of a vital revenue stream. It's a conflict in which streamers appear far more willing to flex their muscle as their command of audiences continues to grow.

YouTube TV still sits behind major traditional cable operators like Comcast Corp.'s (CMCSA) Xfinity, Charter Communications Inc.'s (CHTR) Spectrum and TPG Inc.'s (TPG) DirecTV in terms of paying audience - but it is fast catching up. When its free, ad-driven YouTube platform is included, the company now draws the largest percentage of viewer hours of any company, Disney and Netflix Inc. (NFLX) included.

Some analysts predict that YouTube will surpass Disney as the largest media company, in terms of revenue, as early as this year.

The dispute was the latest in a string of disagreements between YouTube TV and major television companies. The streaming service, which is popular with viewers looking to watch live programming like sports and news, has had several other fraught carriage-fee fights with major media companies like Fox Corp. (FOXA) (FOX), Comcast's NBCUniversal and Paramount Skydance Corp. (PSKY) (Fox Corp. and MarketWatch parent News Corp share common ownership.) Each of those conflicts ended with last-minute agreements before any disruption to programming could occur.

A similar fight with TelevisaUnivision (TV) (MX:TLEVISACPO), however, reached an impasse in September, forcing the Spanish-language broadcaster's programming off YouTube TV's platform. That led President Donald Trump to press Google to make a deal and restore TelevisaUnivision's programming.

-Lukas I. Alpert

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11-15-25 1222ET