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Alphabet, Inc.’s (GOOGL) (GOOG) YouTube has opted to hold off despite overtures from Walt Disney Co. (DIS) to resolve the standoff over the terms of its distribution deal, following a blackout of all Disney channels on the Google-owned video streaming platform from Thursday night.
The crosscurrents surrounding the non-renewal haven’t hurt shares of either company. Alphabet’s Class A stock has gained about 0.8% since Thursday, while Disney stock has added a more modest 0.3%.
In a blog post, YouTube acknowledged that Disney has requested a 24-hour restoration of ABC on the platform for Tuesday's Election Day. The country is holding statewide and local elections, including gubernatorial races in Virginia and New Jersey, as well as several mayoral and special congressional elections.
While thanking Disney for the proposal, YouTube said in an email, which it disclosed publicly, that “Your proposal would permit us to return Disney’s ABC stations only for a day and will cause customer confusion among those who may briefly see ABC on YouTube TV only to lose it again shortly after.”
YouTube stated that there are numerous other options for customers to access election news, which is “very widely” available across other broadcast stations and news networks on YouTube TV and the main YouTube service. “In fact, on the last two U.S. election days, the vast majority of tuned-in YouTube TV subscribers chose not to watch ABC.”
The Google-owned service pointed to a precedent where DirecTV did not budge to Disney’s tactics of seeking a 24-hour resumption to cover the presidential debate held in September 2024. It also noted that Disney could utilize its ABC News YouTube page, which has 19.1 million subscribers, as well as the YouTube pages of ABC local stations, to cover the elections.
The streaming service called for the immediate restoration of Disney channels, including ABC and ESPN networks, even as negotiations continue. “If you agree with our proposal and give us approval, we can get our operational teams together and get these channels live in hours,” YouTube said. “Let's get a fair deal done so we can get back to providing our mutual customers with the content they want.”
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