YouTube TV subscribers on Thursday lost access to channels like ESPN and ABC, whose owner, Disney, had demanded more money for its programs and channels.
In a statement on Thursday, YouTube said that Disney had threatened to remove its content if a new deal that would pay Disney more money could not be reached before an agreement expired at midnight on Friday. Negotiations broke down on Thursday, hours before the deal expired.
Streaming services have shifted their strategy from vying for subscribers to getting viewers to spend more time on their platforms, in order to maximize advertising revenue generated by popular videos.
YouTube said in its statement that Disney’s terms would force it to raise its prices, and that removing its content from YouTube TV would drive viewers to Disney’s own streaming services, which include Disney+ and Hulu. People in the United States spend less time watching those platforms than YouTube and Netflix, although Disney and YouTube make more revenue than Netflix.
In a statement emailed on Friday, Disney said that Google was using its dominant position in the internet market to reject terms that Disney had already agreed to with other content distributors.
Subscribers would be offered a $20 credit on YouTube TV if Disney content stays off the platform for long, YouTube said.
Francesca Regalado is a Times reporter covering breaking news.
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