[[UPDATE 11/15/25: Disney and YouTube have a deal. The Mouse House announced that the two companies’ new distribution agreement will deliver “marquee sports, news and entertainment programming” as well as “greater choice and value” for consumers.]]
The longest government shutdown in U.S. history has come to an end, but in the world of streaming media, another bitter dispute is dragging on with no end in sight. Disney and YouTube still cannot agree on the carriage deal they need to bring Disney’s channels back to YouTube TV.
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The standoff looked as if it was moving toward a resolution last week, but during Disney’s Q3 2025 earnings call, Chief Financial Officer Hugh Johnston took a more pessimistic stance. He told analysts that the Mouse House Disney has “built a hedge” into its projections to account for a potentially protracted fight against YouTube.
Disney and YouTube both say they just want a fair deal. Viewers just want the situation to resolve itself before they miss too many more Monday Night Football broadcasts. Both sides have ways they can hold out for a better deal, but someone has to blink first eventually. Who will it be?
Disney piece of leverage #1: The ESPN app is coming
Though the carriage dispute involves channels affiliated with ABC and 20th Century FOX, the clear flashpoint of the feud is the ESPN family of networks. Since launching its alternative to old-school cable packages, YouTube has built its TV offerings around its ability to distribute live sports. It has rolled out several packages to serve sports fans who have limited access to their favorite teams and events (more on that later).
Disney’s decision to launch a $30-per-month ESPN streaming service may be the origin of the carriage dispute. If the two sides can’t come to an agreement, consumers will have to go elsewhere to watch The Worldwide Leader in Sports. That plays right into Disney’s hands, and it may have been the company’s plan all along. “Disney is reducing its reliance upon cable companies to distribute its channels,” said Emarketer senior analyst Ross Benes. “But cutting out video distributors will take time.”
YouTube piece of leverage #1: NFL Sunday Ticket can counter the appeal of the ESPN app
Football fans can get NFL Sunday Ticket through YouTube, so the Google-owned hub has its own solution for football-starved consumers. Rather than adding ESPN to their growing list of streaming subscriptions, those households can get the majority of each week’s NFL games, along with a plethora of other sports channels, on a single YouTube TV bill.
The Sunday Ticket add-on for YouTube TV is causing headaches amid the Disney dispute, but YouTube can still brand itself as a primary provider of live sports. Even without ESPN in its lineup, its sports coverage is more expansive (and, it should be said, more expensive) than most of its competitors.
Disney piece of leverage #2: YouTube is in a lose-lose situation
Whether YouTube accedes to Disney’s demands or stands firm, it is likely to frustrate a significant portion of its YouTube TV subscriber base (which now includes more than 10 million customers). It’s a classic case of damned if you do, damned if you don’t.
On one hand, YouTube indicated that meeting Disney’s demands would “force deal terms that would raise prices on our customers.” For consumers who are already concerned about regular YouTube TV price hikes, additional costs won’t feel great. But if YouTube holds out, its ongoing outages will rankle people who feel they pay too much for inconsistent coverage.
YouTube piece of leverage #2: People are already fed up about the limits of ESPN access
Sports fans just want to watch their favorite teams, but in a fractured streaming landscape, that task isn’t always so simple. Blackouts have become so common that Patrick Mahomes’ mom wasn’t even able to access one of her son’s games earlier this year.
Even if consumers feel that YouTube is using strongarm tactics to push around rival who have smaller market capitalizations, ESPN is more likely to be blamed for the lack of access that results from a protracted dispute. Even inside of the company, Pat McAfee is calling on his higher-ups to give the people what they want.
Disney piece of leverage #3: For YouTube, these disputes are a “one vs. many” situation
This carriage fight isn’t the first one YouTube has had to contest, and it likely won’t be the last. A battle against NBCUniversal knocked the Peacock’s channels off of YouTube TV earlier this year. The feud with Disney comes on the heels of a similar dispute that was resolved in 2021.
YouTube has shown that it is determined to fight for the best possible deal for its TV-watching customers. At a certain point, however, the platform risks a death by a thousand cuts. How long can YouTube keep risking carriage interruptions before its subscribers decide that alternatives like Hulu Live TV and Fubo TV come with less hassle?
YouTube piece of leverage #3: The nuclear option
At the end of the day, this dispute is a game of chicken. Both Disney and YouTube will take financial hits for as long as they fail to reach a deal. Disney’s stock is down after the news of its “hedge,” while YouTube is placating consumers with credits.
If the dispute drags on long enough to hit these companies where it hurts, Disney will suffer more consequences. If only the Mouse House had a Google-sized market cap — then it would have more leverage in its YouTube TV negotiations.
