YouTube TV’s Blackout Scare Explained
By Movieguide® Contributor
While blackouts may seem like a dying vestige of cable, a dispute between YouTube and Paramount Global nearly caused 20 channels to go dark, revealing they can still appear in the streaming age.
The two companies experienced a major dispute as they were unable to agree upon new pricing after YouTube renewed its distribution deal with Paramount Global. As the previous contract expired on Feb. 13, the two sides agreed to a short-term extension to keep these channels live, but there was no guarantee a long-term deal could be hashed out. As is typically the case, Paramount was seeking as higher rate, while YouTube wanted to keep costs low to avoid having to raise its subscription price.
It seemed that both sides anticipated a lengthy battle; Paramount began making the dispute public and created a website that allowed the public to voice their displeasure with YouTube. Meanwhile, YouTube informed its users that if the dispute created blackouts, they would offer an $8 credit for the lost Paramount channels, while also noting that Paramount+ costs $7.99 per month.
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On Feb. 15, though, with the short-term patch was still in place, the two sides came to an agreement, guaranteeing access for the future and ending the dispute.
“We’re happy to share that we’ve reached a deal to continue carrying Paramount channels, including CBS, CBS Sports, Nickelodeon and more,” YouTube wrote on an update to a blog post about the dispute. “With this agreement, YouTube TV will continue to offer 100+ channels and add-ons including Paramount+ with SHOWTIME and will enable more user choice in the future. To our subscribers, we appreciate your patience while we negotiated on your behalf.”
“We are pleased to announce a renewed Paramount-Google agreement for the continued carriage of Paramount’s leading portfolio of entertainment, news and sports networks across YouTube TV’s platform,” Paramount added in a statement. “The multi-year deal also features and expanded streaming relationship, with the ongoing inclusion of Paramount+ with Showtime and BET+ among YouTube Primetime Channels and providing Google with the right to make Paramount+ available to qualifying YouTube TV customers. We look forward to extending our long-standing partnership and giving audiences greater access to their favorite programming.”
While this dispute ended up being resolved without a blackout, it highlights the way that streaming is carrying over aspects of the cable industry, especially as the offerings of live programming extends. Most major streaming services are now capable of experiencing a blackout to some area of their content, though the condition for these to occur is unlikely for at least the upcoming years.
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