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Disney ( DIS ) channels return to YouTube after fee dispute

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Financial terms of the deal remains undisclosed

(Adds details in paragraph 3 and background from paragraph 4

onwards)

By Harshita Mary Varghese and Dheeraj Kumar

Nov 14 (Reuters) - Google's YouTube and Walt Disney ( DIS ) said

on Friday they had reached an agreement to restore Disney ( DIS )-owned

networks to YouTube TV, after a fee dispute left millions of

subscribers without access to U.S. Election Day programming and

major live sports events.

The full line-up of Disney ( DIS ) channels including ABC,

ESPN ( DIS ), FX and National Geographic will return to YouTube TV from

Friday, the companies said in separate statements.

Additionally, ESPN's ( DIS ) full line-up of sports, including

content from ESPN Unlimited, will be available to base-plan

subscribers at no additional cost by the end of 2026, according

to YouTube.

The dispute, centered around carriage fees, or the

per-subscriber rates distributors pay to carry broadcast and

cable networks, had caused Disney's ( DIS ) channels to go dark on

October 30 on one of the largest pay-TV services in the U.S.

Walt Disney ( DIS ) did not immediately respond to a query about the

financial terms of the deal. YouTube said it was not disclosing

the deal's terms.

CNBC reported last week that Disney ( DIS ) sought rates comparable

to those paid by major distributors, including around $10 a

subscriber per month for ESPN ( DIS ).

YouTube TV's rapid growth as a pay-TV platform, combined

with Google's vast financial resources, gives it

greater negotiating leverage with media companies and allows it

to operate with less short-term financial pressure than

traditional providers.

The service has been locked in negotiations and carriage

disputes with major media firms that were threatening to pull

their networks from the platform.

Walt Disney ( DIS ) CEO Bob Iger said on Thursday his company had

proposed a deal "equal to or better than what other large

distributors have already agreed to," referring to talks with

YouTube TV over the dispute.

Prospects of a prolonged fight over the distribution of Walt

Disney's ( DIS ) television networks had worried investors about the

outlook for its already declining TV business.

Walt Disney ( DIS ) missed quarterly revenue expectations as its

cable TV weakness overshadowed strong growth in the company's

streaming and parks businesses.

MISSING KEY EVENTS

Sports programming was among the casualties of the dispute,

with YouTube TV users unable to watch the November 3 "Monday

Night Football" game between the Arizona Cardinals and Dallas

Cowboys.

Disney ( DIS ) asked YouTube TV to restore ABC for U.S. Election Day

coverage on November 4, citing public interest, but the

streaming service rejected the proposal, saying a one-day return

would confuse customers.

YouTube said last month Disney ( DIS ) used the "threat of a

blackout" as a negotiating tactic to force deal terms that would

raise prices for its customers.

Walt Disney ( DIS ) said YouTube TV was "demanding preferential

treatment with lower rates and rejecting terms accepted by other

partners, including Disney's ( DIS ) own services like Hulu + Live TV

and Fubo."

The affected Disney ( DIS ) networks included FX, National

Geographic, Nat Geo Wild, Disney Channel, and ABC News Live.

YouTube TV had said it would offer its pay-TV subscribers a

$20 credit if the Disney ( DIS ) networks remained unavailable on the

platform for an extended period of time.

After a challenging negotiation period, YouTube TV struck a

deal with Comcast ( CMCSA )-owned NBCUniversal to keep NBC shows

such as "Sunday Night Football" and "America's Got Talent" on

the platform.

Earlier in the year, YouTube TV successfully concluded

similarly difficult negotiations with Fox and Paramount,

securing continued access to those networks despite initial

disputes.