YouTube TV started sending subscribers one-time $20 bill credits several days into a continuing shutdown of Disney-owned channels, including ABC and ESPN. The action is designed to soften the blow for subscribers who suddenly found themselves without access to some of the heavily watched networks from the service as carriage talks are continuing behind the curtains.
How the $20 credit works for YouTube TV subscribers
The credit will need to be claimed by most subscribers who were billed directly through YouTube TV themselves. Users are now seeing a notice, in-app and on the service’s website under Settings (often in the Updates section), reading simply “Disney Content.” The $20 is then automatically applied to the next monthly bill when you tap or click “Claim Credit.” The credit is a one-time, good-faith adjustment and will be applied at checkout on your next bill.
Subscribers who pay for YouTube TV through Google Play or a third-party billing provider might receive the credit without needing to apply for it. If you don’t know which billing path your account uses, check the Membership or Billing details in your account settings. YouTube TV has advised customers that eligible accounts will be included as it continues the rollout, and availability of the credit may differ slightly depending on how a customer subscribes.
Some subscribers had previously said they were being offered targeted $10-per-month-for-six-months credits. The current $20 adjustment seems to be a wider, one-time concession meant to acknowledge the immediate disruption as the two companies work toward crafting a new deal.
What channels are affected during the Disney blackout
The blackout cuts across a vast number of Disney-owned networks. In many markets, this would comprise ABC O&Os, ESPN and its sister networks (excluding ESPN Classic), FX and FXX, National Geographic-branded networks, Freeform and the Disney Channel. Live programming, whether on the networks or with program libraries and cloud DVR for these channels as well, is inaccessible through YouTube TV during this dispute.
No group is more affected than sports fans who are missing ESPN and its conference networks. Some viewers seeking to watch the local ABC television station through an antenna will need to wait for the two companies to reach a deal or resort to using over-the-air antennas in markets where ABC is available that way. But users usually have to log in to the apps with a valid TV provider that carries those channels, and so many YouTube TV subscribers may find other streaming options limited until carriage is restored.
Negotiations and industry context behind the blackout
Carriage fights between programmers and distributors have grown more common amid a shifting landscape in pay-TV economics. Disney is wielding the lawsuits to defend the value of sports rights and premium entertainment channels, while virtual MVPDs like YouTube TV want to keep a lid on programming costs that send subscription prices skyward. Analysts at Kagan, a unit of S&P Global Market Intelligence, have long pointed out that ESPN has one of the industry’s highest affiliate fees, making it a flash point in negotiations.
Alphabet has said that YouTube TV’s subscribers rose past 8 million — making it the biggest internet-delivered pay-TV service in the U.S. That scale gives YouTube TV a lot of leverage, but it also makes it more important to quickly solve blackouts. According to Leichtman Research Group, traditional pay-TV continues losing millions of customers each year, while virtual MVPDs gain — but their margins are thin, without space for rising content costs unless the service pushes price hikes onto consumers.
Both companies have indicated that they want the channels returned to viewers as quickly as possible. YouTube has replied that it is sympathetic to the frustration and is working toward a “fair agreement” to bring back the networks. For its part, Disney generally counters that its rates mirror the market value of live sports and premium programming. Newer industry pacts — including the precedent-setting distribution deal between Disney and Charter that included select streaming apps in cable packages — reflect how deals are changing to balance linear TV with direct-to-consumer streaming.
What this means for current YouTube TV subscribers
The $20 credit is not a substitute for lost content, but it’s tangible recognition of the disruption. If you get YouTube TV through YouTube TV itself, see if the credit is available under Settings > Updates and claim your reward there soon. If your charges are billed through a third party, watch for the adjustment on your next statement.
In the meantime, you’ll want to make some alternative plans for sports and local broadcasting.
The two sides were unable to reach a resolution on Monday after meeting with the Federal Communications Commission (which has expressed its frustration with the companies), while their negotiating teams remain at odds over issues including which locals can be included in paid TV packages from Locast, according to three people briefed on the discussions.
Think about an antenna for ABC where reception is possible, and scan your DVR library to see what’s unavailable. Although there isn’t a public timeframe for when these are resolved, carriage disputes tend to conclude with channels returning as part of updated bundles or pricing structures. The credit is a small bridge to that future, and evidence of the more complicated economics now coursing through live TV in the age of streaming.