Entertainment conglomerate Disney (DIS) has asked YouTube TV, the pay-TV service operated by Alphabet’s Google (GOOGL), to distribute its Election Day coverage provided on its ABC network for the sake of public interest.
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Election Day is a national event in the U.S. during which citizens vote to elect various public officials. This year, the event is set for Tuesday, November 4, and will feature key events such as governorship polls in Virginia and New Jersey, as well as a mayoral race in New York.
Disney’s request comes several days after the broadcasting heavyweight pulled its channels, including ABC and ESPN, from YouTube TV as it could not reach a deal with Google on distribution terms. The arrangement between the two companies expired at midnight on Thursday, October 30.
YouTube TV, an alternative to cable TV, boasts about 10 million subscribers. In late October, the Google-operated brand had warned that it would yank off Disney channels on its platform if they were unable to reach a “fair pricing” agreement by October 30th.
Google and Disney Disagree over ‘Costly Economic Terms’
YouTube in a statement argued that Disney’s proposed terms to renew their contracts were based on “costly economic terms” that would jack up YouTube TV prices for the benefit of Disney’s own live TV products, such as Hulu+ Live TV. However, Disney has countered that argument, noting that Google was using its enormous size and power to pressure content providers into arrangements that fall short of industry standards.
In recent weeks, Comcast’s (CMCSA) NBCUniversal and Fox (FOXA) have also raised similar complaints against Google, but the latter two managed to arrange a deal without a blackout.
Meanwhile, Google plans to give YouTube TV subscribers a $20 credit if access to Disney channels on its platform is not restored after an unspecified period of time.
It is important to note that ad sales on YouTube continue to be a major source of revenue for Google, even as revenues from the tech company’s cloud business keep rising steadily over the years.
Is Alphabet a Good Stock to Buy?
On Wall Street, Alphabet’s shares currently have a Strong Buy consensus rating. This is based on 14 Buys and one Hold issued by analysts over the past three months.
Moreover, at $313.25, the average GOOGL price target indicates more than a 10% upswing from the current level.
