After a lot of public drama, YouTube TV and Disney solved their licensing dispute and signed a multi-year distribution agreement. This paved the way for all channels on the Disney network, including ESPC and ABC, to return to YouTube’s live cable TV streaming service. But as it turns out, there’s more to the deal between YouTube TV and Disney.
As part of the renewal agreement, YouTube TV supposedly wanted ESPN Unlimited on its Primetime Channels and its live TV streaming service. Disney kept refusing this demand before eventually accepting it. However, as part of the new multi-year agreement, YouTube TV now has the required consent from Disney to create new themed bundles (via Cord Cutter News). Disney even mentioned this in its announcement, saying “Select networks to be included in various genre-specific packages.”
So, for example, YouTube TV can bundle together sports channels from Disney, ESPN, NBCUniversal, and others into a single sports package. This would benefit users who don’t want to pay for a full streaming service and just want access to live sports channels, analysis, and events. With entertainment channels removed, YouTube should be able to offer such a sports package at a considerably lower price.
A Puck report details that Disney was reluctant to sign such a deal with YouTube TV due to its other licensing agreements. The company does not provide access to its direct-to-consumer content to Amazon, Roku, and others. But YouTube apparently convinced Disney executives after showing the data on how consumers are watching sports in the streaming era.
After multiple price hikes in the last few years, YouTube TV’s monthly base plan has already become extremely expensive at $83. A cheaper sports bundle could help the live cable TV streaming service attract more subscribers.
YouTube TV’s Sports bundle needs to pass the licensing hurdle
YouTube TV has been considering launching a dedicated Sports package for a while now. Its discussions with Fox in September this year supposedly hit a roadblock over such a bundle.
There’s no clear timeline for when YouTube TV might launch a sports bundle. It could take a while, given the licensing hurdles the service will likely need to work through.
