YouTube TV loses ESPN, ABC and other Disney channels in fee dispute
latimes.com
latimes.com
YouTube TV is basically cable TV delivered via the internet with some on-demand content and an “unlimited” DVR system. There are multiple tiers via add-on packages (just like cable), and there is no ad-free offering.
YouTube is the video sharing website everyone uses. The ad-free version of which is called YouTube Premium.
These two services have very little in common besides the obvious branding and parent company. The contract/fee dispute is between Disney and YouTube TV, and the result is that YouTube TV is currently not broadcasting Disney-owned television channels. Disney content is still all over YouTube itself via their YouTube “Channels.”
And the sooner that dies, the better. Cable TV is crap and I don't want to see that model of media succeed into the internet era.
And it has been dying. Look at the ads the roll between the shows and it's clear that TV watchers are aging out. It's all hearing aid commercials and malpractice lawsuits' the only people watching TV through a settop box anymore are the elderly. Bringing that same format of content to youtube's platform, to be watchable on the devices young people use (smartphones, laptops, etc) is a play to make this format relevant to young people again. I hope they fail.
Now, it's hard to argue that people shouldn't be able to pay for just what they want. But now you're effectively arguing for relatively expensive a la carte rentals/purchases which I'm guessing people wouldn't want either if you want to keep revenues neutral. People may want to pay only for the media they watch. But they may not want to pay $5 for a TV show even though I was probably paying way more than that per show when I had cable TV.
If I'm inherently after a passive entertainment experience, there are situations where I want the decisions made for me. If I put on the TV while I exercise, or for background while cooking or cleaning, I don't need it stopping every 30 minutes asking me to choose something else to watch, and yet I also don't want it showing 23 seasons of the Great British Bake Off in a row either. I'll put on a broadcast channel instead.
1) on demand whatever you want to watch whenever you want to watch on whichever device you want to watch
2) no advertisement breaks
3) no mandatory long term contract (maximum length 1 month)
Though I suppose with a happier ending.
HBO on the other hand was constantly fighting for subscribers not just viewership. For them every viewer was worth more money so they had a high bar without much filler.
I do think I'd rather pay YouTube than ESPN directly, because the latter's video services have never worked well for me. Part of me wishes the various services would just tell Disney to get lost, and let them see how much they like providing that service on their own. Though, the conventional wisdom seems to be that live sports programming can't exist on it's own, and that 'regular TV' can't exist without live sports.
It feels that way. On the one hand, it seems like you have to be something of a super-fan to subscribe to one or more of the sport/league-specific sites/apps. On the other hand, local sports availability or even just sports as TV on in background seems like a pretty significant sweetener for a lot of people who might not pay for TV just for the occasional late night talk show, local news broadcast, or reality show.
Sports isn't enough for me to pay for cable any longer. But, if I did, watching a game now and then would probably be what would push me over the line to pay up.
It's much easier to just find pirated live game streams than it is to figure out the cobweb of television rights, which service actually shows local sports, if you're "in" or "out" of market, etc.
I'm sure the economics are still strongly in favor of the TV licensing deals but this has to turn at some point, I'd think, where leagues can go direct-to-consumer across all markets or they just sign deals with streaming companies directly, which Amazon is already doing with the NFL.
https://en.wikipedia.org/wiki/Tying_(commerce)
> Tying (informally, product tying) is the practice of selling one product or service as a mandatory addition to the purchase of a different product or service. In legal terms, a tying sale makes the sale of one good (the tying good) to the de facto customer (or de jure customer) conditional on the purchase of a second distinctive good (the tied good). Tying is often illegal when the products are not naturally related. It is related to but distinct from freebie marketing, a common (and legal) method of giving away (or selling at a substantial discount) one item to ensure a continual flow of sales of another related item.
> Some kinds of tying, especially by contract, have historically been regarded as anti-competitive practices. The basic idea is that consumers are harmed by being forced to buy an undesired good (the tied good) in order to purchase a good they actually want (the tying good), and so would prefer that the goods be sold separately. The company doing this bundling may have a significantly large market share so that it may impose the tie on consumers, despite the forces of market competition. The tie may also harm other companies in the market for the tied good, or who sell only single components.
> One effect of tying can be that low quality products achieve a higher market share than would otherwise be the case.
> Tying may also be a form of price discrimination: people who use more razor blades, for example, pay more than those who just need a one-time shave. Though this may improve overall welfare, by giving more consumers access to the market, such price discrimination can also transfer consumer surpluses to the producer. Tying may also be used with or in place of patents or copyrights to help protect entry into a market, discouraging innovation.
> Tying is often used when the supplier makes one product that is critical to many customers. By threatening to withhold that key product unless others are also purchased, the supplier can increase sales of less necessary products.
> In the United States, most states have laws against tying, which are enforced by state governments. In addition, the U.S. Department of Justice enforces federal laws against tying through its Antitrust Division.
my physical cable to my house is provided by Altice One, I have no option to switch that at all (no there's no FIOS or fiber option here). that's a monopoly.
Last mile infrastructure is not what I find objectionable about cable TV, and last mile infrastructure isn't going anywhere anyway. I want this to die: https://en.wikipedia.org/wiki/Broadcast_programming and I don't care what medium is used to transmit it. Whether it's a coaxial cable, radio transmission from terrestrial tower or satellite, or the internet, it makes no difference to me. The format itself is what I find awful.
> Sony Vue (they're gone! heh)
Yeah, because broadcast programming is a dying format for boomers. I celebrate the demise of all of it, and any company that produces it.
> I don't get the hate.
I live in a society with people who do watch it. I don't like the way broadcast TV turned people into numbed couch potatoes watching hours of ads a day.
Inside the US, the term swapped to refer to social-liberalism rather than classical-liberalism during the great depression.
Thanks for the clarification. It probably adds to the confusion that the landing page for "YouTube TV" goes to the "youtube.com" domain:
How about Google Play, Google Fi, and countless others? They all share the same domain
Without the premium content, it’s hard to do that. I think the content providers know this and are trying to squeeze YouTube into giving more of their profits to the content providers. Either that, or to raise prices to be similar to cable.
YouTube TV is claiming Disney content added $15/month to the bill, so they’re dropping the price by $15/month as long as Disney is out:
> “We will be decreasing our monthly price by $15, from $64.99 to $49.99 while this content remains off of our platform,” YouTube TV said in its Friday night statement.
FWIW, I can’t see any traditional cable TV provider doing this. They might even charge an extra fee as a cherry on top.
It's a retention move that they accept a short lack of their cut of the Disney portion in exchange for not losing customers entirely.
ABC
ABC News Live
Disney Channel
Disney Junior
Disney XD
ESPN
ESPN2
ESPNU
ESPNEWS
Freeform
FX
FXX
FXM
National Geographic
National Geographic Wild
SEC Network
Of those, the Disney bundle would only cover the sports channels on ESPN+ (I'm assuming it has all the cames broadcast on the channels.)Edit: according to other comments ESPN+ doesn't even cover all the sports on the ESPN2 and ESPN3 channels.
These aren’t really comparable to standard Hulu or Netflix or Amazon Prime etc. It’s for people that want to pretend they’re cord-cutting while buying the exact same thing from a streaming company.
As a content package, it's evolved to be something largely different from what you get from the streaming services like Netflix. It's largely sports, news/talk shows, and reality TV and other relatively low-cost lightly scripted/unscripted content, some documentaries... You still have some traditional network content but it's been a while since I've even heard of a network drama or comedy of note.
Remember Netflix' incentives are very different from a network. Netflix wants to acquire and retain subscribers which tends to favor stickier content rather than filling up a schedule with programming that people will tune into out of habit.
Put another way, the network business model is essentially a legacy model. I'm not sure why Netflix would want to recreate an uber-Network.
YoutubeTV lets you create 6 accounts and use 3 simultaneously. I live in NY and share my account with 2 friends in CT for <25$ a person. Absolute steal and a really great product.
It legitimately is way better than cable, though. Ignoring the disputes over fees, I once tried Spectrum's TV Android app (probably 3-4 years ago, I gave up on getting it to work), and this is what I experienced:
* Refuses to work if a VPN is on
* Must disable developer tools (doesn't matter if you changed any settings in there or not)
* Root check
* Must be from a Spectrum home IP (and remember, you can't VPN to your home network to use this app)
* Must allow access to all contacts, all texts, etc or the app would close itself (there is no legitimate justification for this, unlike potential contract stipulations requiring no root, etc - it's purely for selling all your data)
* Didn't even work after I installed it on a totally stock Android device on my home network
* No web interface; if you can't run the app, too bad
Compared to that, YT TV's app is a breath of fresh air. But ignoring the streaming convenience, you also have:
* No ads in the TV guide (which is also more responsive than any DVR I've ever experienced)
* Unlimited DVR is nice (and it's not utter dogshit hardware that would've been considered unimpressive in the 90s)
* You don't need a cable box - just a Chromecast (which is absolute tiny by comparison) or a TV with Chromecast built-in
* The pricing is much easier to understand
Of course, I don't actually pay for it. My mother does, and she put my Google account as an allowed user. I just use it to watch hockey.
It's true that you're paying for the same product, but it's delivered in a package that doesn't scream "fuck you, pay me."
They are lowering the price when one channel leaves but you can’t pick which channels you want.
Lastly YouTubeTV doesn’t solve any problems. For instance local channel access is limited to one location.
I stuck with that for years until fiber was available in my area since a threaten-to-cancel call got my TV price down to $0/month (on top of internet).
Pretty much the worst of all worlds.
I checked the Spectrum website, and the cheapest TV-only package they have is $77.11 for the first month, $66.40 for the next 11, and $98 thereafter. (First month has $9.99 self-install fee - you already pay every month for the cable box and install it yourself, but they charge you even if you pick it up from the store!)
But that's "Mi Plan Latino" - no sports channels. The cheapest with sports, TV Select, is $87.71 for the first month, $77.10 for the next 11, over $110 thereafter. I'm sure I could get better rates by calling them, and I have some competition in my area so I know I could actually get them, but I value my sanity too much for that.
Spectrum also doesn't have any 4k, not even through their app, though they say "we're working to add it soon" [0]. Also no surround [1]. For me, it would make no sense to go with Spectrum even if the alternative was me paying for Youtube TV.
[0]: https://www.spectrum.com/cable-tv/apple-tv-faq
[1]: https://www.spectrum.net/support/tv/spectrum-tv-app-troubles...
I will also say Youtube TV is not the "Exact same thing" that the cable company offers. Fundamentally the product/channels are, but youtube TV gets all the tech right.
Technically YouTube Premium is a package designed to bolster their failing YouTube Music product that few want.
I'd gladly pay $7.50 a month for AD Free YouTube, but $15 is too much.
That was a pretty good deal for me. But without Play Music (YT Music was awful at the time), I couldn't justify the cost.
In some regions you can actually get this. It’s called “Premium Lite”.
https://www.youtube.com/premiumlite
I’m paying 69 NOK which given currency conversion is roughly $7.60, so it’s more or less literally what you ask for.
For those outside the offered regions (thus getting geoblocked) this is literally what the page says for me (copy & paste):
—————————————-
FAQ
What is included with Premium Lite?
YouTube
• Ad-free videos: Watch millions of videos uninterrupted by ads. Learn more
YouTube Kids
• Ad-free in the YouTube Kids app
Premium Lite doesn't include ad-free access to the YouTube Music app.
Are you that surprised? The branding is a complete mess. And Youtube TV is not available in most markets so many people have never heard of it.
https://www.espn.com/espnplus/schedule/_/type/upcoming/categ...
But I am not going to jump through hoops and pay for stuff I do not want, and most importantly, I am not going to spend time researching what is and is not available on + versions versus not +.
Same with NHL. I would pay to watch ice hockey, I will not pay to risk being unable to watch because I live too close to the stadium and hence should be blacked out.
I also will not pay to have advertisement breaks shown to me.
The price has only risen over the years and it's been a pretty bitter pill to swallow.
I already pay for Disney+ but am also paying for their content through YoutubeTV, which I rarely consume (never watch the disney channel; sometimes I have to watch baseball on ESPN because of media rights).
ABC, which is really only used to record the Bachelor/ette programs in this house, is free with an antenna (but lacking the DVR). Not to mention you can watch it a day later using the Hulu subscription we also pay for.
I love the DVR feature of YoutubeTV, but I really only record content that's free over the airwaves. Including This Old House, which is now owned by Roku and has it's own for pay streaming service.
I'm paying eight ways to Sunday for this content, and increasingly of the opinion that it's not worth it.
EDIT: Anyone know of a DVR + digital antenna solution I could implement?
EDIT2: Just pulled the digital antenna out of the drawer and, as expected, the features of the surrounding landscape block all the channels.
Not sure about the current generation of devices but I had a HomeRun device [1] in the past and it was great.
More recently I think I heard of a FireTV product that had an antenna and DVR support.
This is probably making all the rights-holders happy because they're making more money, but it's a short-term solution. In the long run, they're going to be driving viewers away and won't be able to win them back. Yes, TV-watching is a pretty ingrained habit for a lot of people, but it's not set in stone. Other forms of entertainment can and will replace it if it becomes too much of a pain, too expensive, or too confusing.
It's an interesting ethical quandary. I wouldn't mind chipping in financially but not with the current business model. Bundling TV channels I don't care about? No thanks. Local blackouts? Please. Paying the services that engage in these anti-consumer practices is only exacerbating the problem. I see pirate streams as doing my part to force the parties involved to find another way.
As another comment alluded, this is an industry on the precipice of a moment. Along the lines of the arrival of Spotify, or the iPod. We're not far away now.
[1]
Your local ABC channel, ABC News Live, Disney Channel, Disney Junior, Disney XD, Freeform, FX, FXX, FXM, National Geographic, National Geographic Wild, ESPN, ESPN2, ESPN3 (by authentication to the ESPN app), ESPNU, ESPNEWS SEC Network, ACC Network.
This is partially because it benefits the conglomerates business models to have as many channels and content streams as possible to sell ad time on, and partially because for sports teams they can functionally name their price.
In seattle, the brand new hockey team is only available through Root Sports, a smallish production company owned by Warner media and the baseball team. You can only watch the new hockey team if you subscribe to a cable package or online cable package (YouTube tv etc).
Why would a brand new team with no established fan base want to not be in front of as many eyeballs as they can? Because they earn more money when someone pays them to put them behind a cable company.
At no point does this “competition”, which it isn’t, benefit consumers. We used to regulate things like this.
At some point the remaining subscribers can't pay the cost of the ridiculous fees charged for the major sporting events. When that happens the fees must come down, or the sporting companies must find a different solution.
Honestly a great solution for the major sports, like football in Europe, would be to great something like what the MLB did in the US. I know a lot of football fans who'd love to get a subscription for all the Champions League games. Just a fixed price and then watch any game you like. Why pay for Formula 1, hockey or even the Bundesliga, if you only care about the Danish Superliga and Champions League.
Edit: Something something, cost of living. $500 is 3300DKK, which would let you go to a bar, have a meal and four or five beers only seven times.
For that price, you get all the NFL games except Monday night and Thursday night games...
>Sorry, your address is not eligible.
This is the kind of BS that makes not only not buy sports, but to avoid it.
I don't understand how it's legal. Imagine if Netflix could force everyone in a geographic area to subscribe or lose the ability to stream all non-Netflix stuff. It wouldn't even make sense, but this is what happened here.
I think we should kick the Cubs out of Chicago for pulling a stunt like this during a pandemic when most people are barely able to pay their existing bills. Sports teams are absolute vampires that abuse the local population in the name of obscene profits.
It's actually worse than that. I've looked into it, because I'd like to watch Mariners and Kraken games in Portland (blacked out here too). Root Sportsis only available through cable providers and FuboTV or Directv Stream. No other streaming services offer it and there is no way to subscribe directly. It's a mess, so I generally don't watch the games or pirate them.
Back when Big Ugly Dishes were a thing it was far cheaper to piecemeal subscribe to your desired packages. Then DirecTV came along and forced the cable tv model on their subscribers and lobbied hard for laws that killed BUDs. I remember doing the math at the time and DirecTV was about double the price of a BUD.
Now we're back to adhoc subscription if you want to use a bunch of disparate apps and websites, so in one way it could be cheaper. But each streaming site charges retail prices to consumers so in aggregate it ends up costing as much or more than in the cable model. Even so the forced subsidy of ESPN in particular has always been a deeply aggravating thing for me. Sort of like agreeing to split lunch evenly and then discovering after the fact everyone's having sandwiches except the one guy who ordered steak.
Sure about that?
https://www.thelawyersdaily.ca/articles/12443/copyright-trol...
How about we just pay for the things we use? Imagine if a restaurant put a bottle of wine on your bill even though you don't like wine.
They could make several tiers:
- Youtubers-only content: no big media included
- Tier 2: the same + ABC, ESPN, etc...
- Tier 3: same as 2 + exclusive content only available for Tier 3 subscribers
would be a good business model rather than just charging to remove ads.
They strongarm a lot of providers and I'd be surprised if YouTube held out. They will lose subscribers.
My sense is that there's very little really interesting scripted TV on non-premium streaming broadcast/cable at this point. I certainly haven't heard of any "must see TV" on any of the networks or even stations like AMC for ages.
I hate it, but I really do pay that much per month to watch a single game a week plus have the convenience for guests having access to "regular TV".
The content networks force an all or nothing contract. ESPN must be licensed for all subscribers or no ESPN option for anyone.
The same thing that forced me off of cable has forced me off of OTT.
As would likely most I believe. Thus sports propping up this ancient model and myself being part of the problem.
I'm surprised Disney/ESPN is only $15/mo of the bill to be honest, I think Youtube is taking a hit there as I'd bet it's more than half the total base subscription fee.
It's probably more. They're just happy to keep your money.
What happens to big time sports when the fans are priced out of the arena and priced out of watching on TV as well?
My thesis for this is that most people aren’t sports fans, but they pay for sports whether they want to or not due to all the bundling. In a way, non-fans are subsidizing the content for fans.
My sneaky suspicion is that unbundling sports would be a cataclysmic event for the sports television industry. I would pay $15/month for ESPN but I wouldn’t pay $25.
What do you think?
Google is fairly asking that whatever price they pay for ESPN, that no other streaming service (including Hulu which Disney owns) gets a better price. Disney said no. This is the fundamental reason Google does not now have an agreement with Disney for the channels.
Each side blamed the other and neither side was willing to compromise. The cable provider dropped the channel in retaliation and for some 2 years we had no CBS. (Naturally there was no discount in the monthly cable bill as a result of this “principled stand”.)
Friends help friends cut cords.
Eventually I got cable but dropped it a couple years ago.
Edit: One thing to double check that surprised me is that the channel number these days doesn't reliably tell you if the channel is VHF or UHF. That is, a low-numbered channel like "3" or "8" could really be a UHF channel. I guess they let them keep long-established channel numbers for marketing purposes. So check what you really need before buying an antenna. The website above does provide the needed detail under "RF Channel".
Though, of course, you have to be somewhere where an antenna can pick up what you want to watch.
I remember a company named Aereo being sued out of existence because they were offering OTA TV to their subscribers by allocating an micro antenna to each user. The excuse did fly in court.
https://en.wikipedia.org/wiki/Aereo
BTW, thanks for sharing!
You won’t get live sports or networks, but you will get a lot of reruns shows, second run movies, and news coverage that is a few hours old.
They don’t have regular channels and instead do all their own programming. You get things like “The Bob Vila Channel” and other channels that focus on library/long tail content.
What annoys me about these free offerings is that they have cannibalized their content from paid streaming services. Before, services like Hulu and Amazon Prime would stock their catalog with tons of old "classic" TV shows that you could binge commercial free. Now, the only way to stream many of those shows is with commercials, they are no longer available as part of any paid commercial-free packages, unless you are willing to purchase the individual episodes.
I bought a $10 antenna from channel master and it's been a great investment.
And a lot of people forget, there is OTA TV too. In the days of streaming everything media, there are still OTA sources just in case. Especially during a power outage, where AM/FM and broadcast TV still work to receive info.
I'm a geek so, I'd LOVE to take this step. Unfortunately, I live in the part of the country that has too many mountains to make OTA reception an easy task. I personally live down between two ridges that make it so I'd have to have an antenna 150 feet in the air.
magistv
It offers everything that's on star/hbo/netflix/hulu/disney plus/amazon/etc plus live sports plus a lot of live hd channels for just 9 a month.
1. Cease broadcasting / licensing of content
2. Talk to media to patiently explain how your adversary is responsible for depriving you of your precious {sports team | Marvel hero}
3. Hope ensuing social media / support queue shit storm hurts your adversary more than you (by the looks of these comments, advantage Disney)
4. Sign a deal
5. Repeat at next contract!
Even if they make a deal tomorrow, we had so much recorded that just disappeared.
Going to be lots of crying kids in the morning
Though, quality of recordings is lower and we had some random losses over time.
I would never in a million years, as a business owner, message one of my clients and blame a vendor for bad service and want them to help solve the dispute.
I just do not get the thought process here. "Well, these people are paying us a ton of money every month and we're just swimming in profits. Lets ask those same customers to try to get us a better deal for us with Disney so that we'll be more profitable!
No.
If you were re-selling a vendor's product and the vender raised their prices (to you) by, say, 50%: you'd be silly not to explain to your customers what happened.
One way I interpret this is that Disney is trying to muscle everyone by using their content. They'd rather it be available exclusively by subscription to their streaming service. For some reason all of these companies think everyone has $50 per month to throw their way. Most people can't subscribe to five or six streaming services simultaneously. Even if you could, how much TV do you watch? Is that a good use of time and money?
I don’t see this as a space them worth burning the money to compete in. Makes more sense to invest that back in their own platform, even with their budgets lack of focus can be damaging.
The only difference is that you're now responsible for maintaining your own streaming equipment.
>The only difference is that you're now responsible for maintaining your own streaming equipment.
Losing those box fees, HD fee, regulatory recovery fee, etc. nets one a savings even if the advertised monthly price is the same. Being able to self-install is also worth a day of PTO.
Live sports on ESPN isn't typically on ESPN+.
> Stream live sports and exclusive originals on ESPN+
> Thousands of live events
> With movies, TV shows, and live sports, there's something for everyone.
They say it 3 times.
Maybe OC meant to say Disney+ doesn’t include ESPN, that would be a true statement. Or maybe they meant to say Disney+ doesn’t include major live sports events, but that wasn’t the claim.
Saying Disney+ doesn’t have live sports is an inaccurate claim. They do in fact offer live sports if you read their offering.
Edit: I'm mistaken. https://www.hulu.com/live-tv#bundle_details
Disney doesn't want you to drop your cable package for ESPN+.
You simply need more of this for YouTube to listen these days instead of them banning its own users and creators.
Just look at this typical ESPN fan:
> “I will cancel immediately if you can’t work a deal,”
The same will happen for Disney fans watching on YouTube and it is working. They'll just run to the Disney+ app instead.
They piggybacked off of cable the way Netflix piggybacked off of rentals.
Sports streaming is a massive point of disruption that's happening at a very small scale but I suspect we'll see more of it as these types of deals fizzle out.
Derided prior to launch in late 2019 as having missed the boat, it's a massive force now.
Same with HBO Max, which added even more user hostile behavior, but ... they have their content so it's working.
The plug was pulled rather abruptly
You confused YouTube and YouTube TV, these are fully separate items despite its name.
At the moment, any individual content creator is just a little xitch when it comes to the power relationship.
All the YouTube creators, all the Apple App Store developers, all the Xbox developers etc.
Hmmm sounds like an illegal cartel.