YouTube TV and Disney are in discussions for rights fees to Disney’s catalog of channels, which as is always the case has lead to threats that channels will be removed as well as entreaties by Disney to tell YouTube TV’s subscribers to go to a website and implore Google to make a deal to keep the ESPN family of networks, ABC and more on the streaming service. Disney does not want to lose a partner the scale of YouTube TV, which has 10 million subscribers and is the 4th largest live TV subscription service provider in the US.
So here is what is going to happen. This is going to get worked out. Disney doesn’t want ESPN off of YouTube TV, and YouTube TV does not want to lose ESPN, ABC, FX etc. So yeah, there is no version of this story that ends with YouTube TV and Disney not working it all out like adults. But I don’t think that will be it.
As of a few months ago, Disney has been offering ESPN Unlimited, which can be accessed as a standalone service for $30.00. Disney (has from day one) said it expects TV providers to give their subscribers access to the service as part of their TV service. But so far, only a handful of prominent providers have done so.
But right now the list of ESPN Unlimited partners only includes Spectrum, Hulu With Live TV/The Disney Bundle, Fubo TV, the DirecTV Streaming service, and Verizon FiOS. As you can see. Not on the list are Comcast (who may have a bone to pick with the WWE on that front) and YouTube TV. And this does not even begin to factor the number of smaller regional providers and telcos and broadband providers. As far as YouTube losing Disney’s current offerings, you can be sure it will all work out.
That being said, this might seem like a non-issue on the surface. If you have those pay-TV services, why would you also need access to all of the same content on ESPN via the new service? It’s because aside from the ESPN and NFL Network content offered via the ESPN app, The Sports Leader also inked a deal with WWE to be the exclusive streaming partner of WWE partner main roster Premium Live Events, AKA PLE’s for 325 million a year and a grand total of 1.6 billion over its lifetime. ESPN has put a lot of money into what is a long-term deal with the WWE and needs eyes on that content to make things pay off for all of the advertising buys it has set up for the events.
10 million new sets of potential eyes sure would help out. WWE content was a big winner on Peacock. Its deal with WWE, which runs out at the end of 2025, led to a big spike in subscribers and gave WWE a home on a platform that was available for a forgiving price of as little $6.99 per month.
WWE fans jumped on board quickly (cable users or not) at that price. At $30.00, we are talking about a different ask, but Disney carries a big stick, even bigger than Comcast. ESPN is a draw like very few. And if it turns out there is a lot of crossover appeal within the sports and sports entertainment world, WWE content (think WrestleMania) could be a very big deal for ESPN.
Unfortunately for both companies, the first WWE event available via the ESPN app generated more headlines about potential viewers frustrated that they could not see it than the gaudy headlines WWE typically pushes concerning record viewership. That is probably a sign that they did not have numbers to brag about. For instance, if WrestlePalooza had 5 million views, do you really think that would not have been trumpeted all over the media? I seriously doubt it. ESPN publicly seems to be taking it in stride in a corporate statement saying, “Things are going well and we have started strong. We don’t provide the viewership specifics, but things have been going well.”
The truth is that while ESPN and the WWE may have gotten out over their skis on their deal, ESPN will wrangle most TV providers in the end. Because if the option is not having multiple popular channels, most providers will bend the knee to whatever demands are made. This is because, unlike Comcast, whose TV offerings outside of NBC are so unappealing that they are being spun off into a totally different company, ESPN and its multiple networks are a bludgeon that keeps on giving for Disney.
So don’t worry YouTube TV users. This will all work out, and soon. Neither side wants that much sports content to disappear from YouTube TV. And neither side will let it happen for the long term. And in the end, WWE fans will have even more reason to enjoy the service.
When it’s all over, YouTube TV/YouTube will be the home of Sunday Ticket, which has been credited with millions of new subscribers for the provider and a place to get big WWE events too. With local broadcast channels and the rest of the mainstream sports networks, it will be a compelling offer for those looking for an all-in-one streaming service.
If you are Comcast, you may as well get the checkbook ready and expect to see a drop in Peacock subscribers as well.
