On Sunday, YouTube TV formally informed customers that it is issuing a $20 credit as a result of the company’s ongoing carriage dispute with Disney which has kept the ESPN family of networks off of the platform since Halloween.
In an email sent to subscribers, YouTube TV said, “Over the next few days, you will receive a follow-up email with instructions on how to redeem your $20 credit for YouTube TV. Once redeemed, this will be applied to your next bill.”
Since before the Disney blackout, YouTube TV has said that any extended disruption of service would result in the $20 rebate. Saturday, The Athletic reported customers would receive the $20 credit if YouTube TV and Disney failed to reach a deal by Sunday. With customers being informed of the forthcoming rebate on Sunday afternoon, a deal in the next few days seems unlikely.
As such, it seems for the second week in a row, YouTube TV customers will be unable to watch Monday Night Football on ESPN. This week’s matchup features the division-leading Philadelphia Eagles and Green Bay Packers, one of the most important games of the NFL season thus far.
Per a separate report in The Athletic late last week, the two sides remain “far apart” on the price YouTube TV will pay Disney per subscriber. YouTube TV, currently the fourth-largest pay TV distributor in the country, wants to pay rates commensurate with the largest distributors. Projections indicate that YouTube TV will likely become the largest pay TV distributor in the country as early as next year.
Based on previously reported figures that suggest the ESPN family of networks generally commands approximately $15 per month per subscriber from distributors, Disney is losing out on about $5 million each day its networks remain dark on YouTube TV. As of Sunday, Disney has sacrificed about $50 million of potential revenue by not reaching a deal.
Conversely, YouTube TV is surely losing subscribers each day Disney-owned networks remain unavailable on the platform. The company is certainly banking on the $20 credit stymieing some of those losses.
About Drew Lerner
Drew Lerner is a staff writer for Awful Announcing and an aspiring cable subscriber. He previously covered sports media for Sports Media Watch. Future beat writer for the Oasis reunion tour.