YouTube TV and its parent, Google, want to “eliminate competition” and “devalue the very content that helped them build their service,” top Disney executives charged in a memo to employees Friday.
Disney Entertainment Co-Chairs Dana Walden and Alan Bergman joined with ESPN Chairman Jimmy Pitaro in giving workers an update on the blackout, which doesn’t appear likely to be resolved anytime soon. (Read it in full below.)
ABC, ESPN and other Disney networks went dark shortly after 11 p.m. ET on Thursday, before the official midnight expiration of the companies’ distribution contract. YouTube TV, which launched in 2017, has grown into the No. 3 pay-TV operator in the U.S., with about 10 million subscribers. In a string of bare-knuckled carriage battles this year, it has sought to leverage its scale and growth to secure better financial terms. In several cases, it has asked for the right to fully ingest programming from media companies’ streaming services into the YouTube TV interface, an existential threat to services like Peacock, Paramount+ and Hulu.
The blackout already hit prime time programming on ABC and other networks for viewers on the West Coast on Thursday. While Halloween is generally not a heavy viewing night, especially on a Friday, a full slate of high-caliber college football games is in store on Saturday, with Monday Night Football approaching, along with Election Day coverage on Tuesday.
Here is the memo from Walden, Bergman and Pitaro:
Team,
As you are no doubt aware, last night YouTube TV pulled our channels from their service, prior to the midnight expiration of our deal, and with no advance notice to their subscribers, or to us. In doing so, they not only cut off access to our live programming but also deleted all previously recorded shows and events from their subscribers’ libraries. Their actions make clear how little regard they have for their customers and are consistent with an attitude which has been prevalent throughout our negotiations — YouTube TV and its owner, Google, are not interested in achieving a fair deal with us. Instead, they want to use their power and extraordinary resources to eliminate competition and devalue the very content that helped them build their service.
We are enormously proud of the work done by so many of you to create the highest quality and most compelling content. At ESPN and ABC in particular, we have made significant investments in programming, including the best line-up of live sports in the industry — bar none. On ABC alone, we have increased the number of live games by nearly 80% over the past several years. The lineup for this weekend is incredible and includes 13 of the top 25 college football teams on our platforms, a double header of NWSL games on ESPN, and leads right into Monday Night Football featuring the Arizona Cardinals vs. the Dallas Cowboys on ABC.
The bottom line is that our channels are extremely valuable, and we can only continue to program them with the sports and entertainment viewers love most if we stand our ground against tactics that threaten the integrity of our business and the value of our creative work. We are asking nothing more of YouTube TV than what we have gotten from every other distributor – fair rates for our channels.
We will keep you informed as this matter progresses. For those of you who are YouTube TV customers and have lost access to our channels, there are other ways you can watch, which you can find here: KeepMyNetworks.com.
We know how hard so many of you work every day to create, promote, and support our programming. We’re deeply grateful for your continued focus, professionalism, and commitment.
Alan, Dana & Jimmy
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