Disney warns ESPN, other networks may go out on YouTube TV at month’s end

Just a month after reaching a deal with NBCUniversal to prevent their network from being cut, YouTube TV has another potential cut on its hands — this time Disney.

Disney told YouTube TV subscribers Thursday that the company’s networks, including ABC and ESPN, will begin broadcasting public messages to warn customers that they will be removed from the service if the two sides fail to reach a new distribution deal that expires at 11:59 p.m. ET on Oct. 30.

“This is the latest example of Google exploiting its position to the detriment of its own customers,” a Disney spokesperson said in a statement. “If we don’t reach a fair agreement soon, YouTube TV customers will lose access to all our major programming, including ESPN and ABC, as well as the NFL, college football, NBA and NHL seasons, and much more.”

Disney began airing public announcements at 5pm ET on YouTube TV.

Like NBCUniversal, YouTube TV wants better rates for Disney’s shows, according to people familiar with the discussions. YouTube TV has about 10 million subscribers and wants more favorable terms given its scale, the people said.

“We are working in good faith with Disney to negotiate an agreement that will pay them fairly for their content on YouTube TV,” a spokesperson for the service said in a statement. “Unfortunately, Disney is proposing costly economic terms that will increase prices for YouTube TV customers and give our customers fewer options while leveraging Disney’s own live TV products, such as Hulu + Live TV and soon Fubo. Without a deal, we will be forced to remove Disney content from YouTube TV and offer subscribers a $20 credit if it remains unavailable for an extended period of time.”

YouTube TV and NBCUniversal for the first time temporary extension To avoid a power outage before signing a finalized agreement a few days later.

Two years ago, Disney reached an unusual distribution deal with Charter, the largest U.S. pay-TV provider by subscribers; This deal gave select Charter subscribers access to Disney+, Hulu and ESPN+ at no extra cost. Disney is willing to offer YouTube TV the same terms as the Charter agreement, two of the sources said.

YouTube TV is once again looking to acquire Disney’s streaming content, allowing customers to watch shows on Disney+, Hulu and ESPN+ without leaving the YouTube platform, according to a person familiar with the negotiations. YouTube TV also asked for this in negotiations with NBCUniversal and was rejected. Similarly, Disney has no plans to say yes to this request, according to sources familiar with the company’s thinking.

The conflict between Disney and YouTube has an additional element of conflict. YouTube hired former Disney distribution executive Justin Connolly earlier this year, prompting Disney to file a breach of contract lawsuit. Connolly has withdrawn from those discussions, according to sources familiar with the process.

Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant would become CNBC’s new parent company, based on Comcast’s planned Versant spinoff.