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Disney is currently facing a conflict with Google’s YouTube TV, which has removed access to several key channels, including ESPN and ABC. This situation has prompted Disney’s top executives to communicate their commitment to negotiating a fair contract for their content.
In a memo to employees, Disney Entertainment Co-Chairs Dana Walden and Alan Bergman, along with ESPN Chairman Jimmy Pitaro, expressed their concerns regarding the issue.
The executives accused YouTube TV of exhibiting a lack of consideration for customers and failing to engage in meaningful negotiations.
They argued that YouTube and its parent company, Google, appear to be leveraging their market dominance to undermine competition and devalue the content essential to their service’s success.
Disney’s stance on negotiations
In their memo, Disney’s leadership emphasized they are not asking for anything beyond what they have successfully negotiated with other distributors.
They are focused on securing fair rates for their channels, which they believe are highly valuable due to their quality programming. Disney has invested significantly in its content, particularly in sports, positioning itself as an industry leader.
Highlighting programming achievements
Walden, Bergman, and Pitaro pointed out the impressive growth in live sports programming on Disney’s channels, especially on ABC, where the number of live games has increased by nearly 80% in recent years. They highlighted an exciting lineup of sports events scheduled for the upcoming weekend, which includes top college football matchups and a double-header of National Women’s Soccer League games on ESPN.
This programming underscores the value of Disney’s offerings and their significance in negotiations with YouTube TV.
The executives reiterated that their channels can only continue to deliver such popular programming if they resist tactics that threaten the integrity of their business.
They reaffirmed their commitment to negotiating a fair deal, urging YouTube TV to recognize the worth of their channels.
Background on Justin Connolly’s departure
In a related development, Disney recently settled a lawsuit against YouTube concerning the recruitment of a high-ranking executive, Justin Connolly. Connolly, who served as the president of platform distribution at Disney for 25 years, left the company in May to join YouTube, where he now oversees media and sports operations.
The lawsuit was filed shortly after Connolly’s departure, alleging that YouTube unlawfully recruited him while he was under contract with Disney. Disney asserted that Connolly’s exit negatively impacted their ongoing negotiations with YouTube regarding a billion-dollar licensing agreement.
Negotiation implications
Connolly’s move to YouTube occurred at a crucial time for Disney, as they were engaged in significant negotiations for licensing their content. Disney executives were concerned that Connolly’s insider knowledge could give YouTube a competitive advantage in securing sports rights, especially against ESPN.
Despite these apprehensions, YouTube’s legal team argued that Connolly would be restricted from engaging in negotiations about Disney’s content due to confidentiality obligations. Ultimately, a judge dismissed Disney’s request for a restraining order to prevent Connolly from working at YouTube, indicating insufficient grounds for such an order.
Now that the lawsuit is resolved, both parties can focus on their respective business strategies, while Disney continues to pursue negotiations with YouTube TV. They remain optimistic about reaching an agreement that reflects the value of their programming and meets viewer needs.
Future outlook
The executives accused YouTube TV of exhibiting a lack of consideration for customers and failing to engage in meaningful negotiations. They argued that YouTube and its parent company, Google, appear to be leveraging their market dominance to undermine competition and devalue the content essential to their service’s success.0
The executives accused YouTube TV of exhibiting a lack of consideration for customers and failing to engage in meaningful negotiations. They argued that YouTube and its parent company, Google, appear to be leveraging their market dominance to undermine competition and devalue the content essential to their service’s success.1
