NBC warns customers it may go dark on YouTube TV
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NBCUniversal on Thursday warned customers that its networks may be dropped from YouTube TV if the two parties cannot reach a new distribution agreement by Sept. 30.
Why it matters: NBCU rarely leverages consumer campaigns to negotiate pay-TV distribution fights. The escalation speaks to the challenges it says it's facing trying to negotiate with YouTube TV.
- NBC channels that would be impacted include its broadcast networks NBC and Telemundo, as well as cable networks such as Bravo, CNBC, MSNBC, USA Network and others.
What they're saying: "Google, with its $3 trillion market cap, already controls what Americans see online through search and ads — now it wants to control what we watch," NBCU said in a statement.
- "YouTube TV has refused the best rates and terms in the market, demanding preferential treatment and seeking an unfair advantage over competitors to dominate the video marketplace — all under the false pretense of fighting for the consumer."
- "The result: YouTube TV customers will lose access to NBCUniversal's premium programming, including Sunday Night Football, NBA, Big Ten Football, WWE, Premier League, Saturday Night Live, The Voice, The Real Housewives, and much more."
The other side: While YouTube said in a statement it's committed to reaching a deal with NBCU by Sept. 30, it said the price was too high.
- "NBCUniversal is asking us to pay more than what they charge consumers for the same content on Peacock, which would mean less flexibility and higher prices for our subscribers," it said.
- "If their content is unavailable for an extended period of time, we'll offer our subscribers a $10 credit."
Zoom out: This is the third major pay-TV dispute that has been made public between a national content provider and YouTube TV over the past few months.
- In August, ahead of football season, YouTube TV threatened to drop Fox Corp. channels. The two sides ultimately came to an agreement days later.
- Earlier this month, TelevisaUnivision, one of two major Spanish-language broadcasters in the U.S., unveiled a new consumer ad campaign warning customers that YouTube TV planned to remove Univision from its core offering and move it to a Spanish-language package at an extra cost.
Of note: YouTube TV is one of the largest pay-TV providers in the U.S., with more than 8 million customers.
What to watch: If NBCU and YouTube TV fail to come to an agreement, both of the country's largest Spanish-language broadcasters — Univision and NBCU's Telemundo — could be made inaccessible to customers on YouTube TV at the same time.
Editor's note: This story was updated with comment from YouTube.
