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Key Takeaways
- YouTube threatened to shut off Fox programming from its YouTube TV streaming service unless a new contract is reached.
- The unit of Alphabet’s Google said the blackout would come at 5 P.M. ET tomorrow and affect programming including Fox Sports, News, and Business.
- YouTube argued Fox is asking for too much money.
YouTube said it will shut off Fox (FOXA) programming, including Fox Sports, from its YouTube TV streaming service unless a new contract is reached by 5:00 P.M. Eastern Time tomorrow.
The threat came just days before Week 1 of the new college football season and the first game of the National Football League campaign. Fox is televising the biggest college football game of the week, No. 1 Texas at No. 3 Ohio State, at noon ET Saturday.
YouTube TV, a unit of Alphabet’s (GOOGL) Google, wrote in a blog post that Fox was “asking for payments that are far higher than what partners with comparable content offerings receive. Our priority is to reach a deal that reflects the value of their content and is fair for both sides without passing on additional costs to our subscribers.” It added that the discussions are continuing, and it is “working diligently with the team at Fox to reach an agreement.”
YouTube TV explained that if a blackout occurs and continues for “an extended period of time,” it will give members a $10 credit.
In a statement to Investopedia, Fox argued that while it remains committed to reaching a fair agreement, “we are disappointed that Google continually exploits its outsized influence by proposing terms that are out of step with the marketplace.”
Shares of both Alphabet and Fox are down today, but higher year-to-date.
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