Dramatic Agreement on Content Fees Just Two Days After Broadcast Suspension
[Asia Economy Reporter Kwon Jae-hee] On YouTube TV, which streams TV broadcasts over the internet, Disney-owned channels including the sports broadcast channel ESPN have become available to watch again. This comes just two days after the broadcast was suspended due to a failure to reach an agreement between Google and Walt Disney over content usage fees.
According to the Wall Street Journal (WSJ) on the 19th (local time), Walt Disney has reached an agreement with Google to restore access to its owned channels such as ESPN and FX on the YouTube TV platform.
In a statement released that day, Disney said, "We deeply appreciate Google's cooperation in reaching fair terms consistent with the market," adding, "We are very pleased that our strong lineup, consisting of live sports, news, kids, family, and general entertainment programs, is in the process of being restored to YouTube TV subscribers nationwide."
YouTube also announced via Twitter that "negotiations with Disney have been concluded" and that "access to channels like ESPN and FX has already begun to be restored."
Although the new contract terms have not been disclosed, industry insiders believe that YouTube has agreed to pay substantial distribution fees to stream Disney's channels, which include ABC broadcasting station, local stations, and more than 10 cable channels.
Bloomberg News analyzed the situation as "reflecting the industry's trend of consumers preferring streaming services and canceling cable TV packages."
Meanwhile, Disney owns more than 10 channels including the children's channel Disney Junior, sports broadcast ESPN, and news channel ABC. YouTube TV is a paid platform that offers over 80 cable and terrestrial TV channels, with a membership reaching 4 million.
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