Negotiations between YouTube TV and NBC seem to be getting heated. With the current deal set to expire tomorrow, YouTube TV is offering its subscribers a $10 credit if channels go dark, while NBC says that Google “wants to control what we watch.”
As has become a pattern for YouTube TV, negotiations with a major broadcast partner are hitting a wall as existing contracts come to an end. It happened with Fox just recently and, as previously reported, now it’s NBC’s turn.
In a statement to Front Office Sports late last week, NBC says that YouTube TV is refusing “the best rates” and “demanding preferential treatment.” NBC, in its exuberant statement, further adds that Google “wants to control” what Americans watch.
NBC says:
Google, with its $3 trillion market cap, already controls what Americans see online through search and ads—now it wants to control what we watch. YouTube TV has refused the best rates and terms in the market, demanding preferential treatment and seeking an unfair advantage over competitors to dominate the video marketplace—all under the false pretense of fighting for the consumer.
This comes after a statement from YouTube TV in which Google says that NBC was “asking us to pay more than what they charge consumers for the same content on Peacock.” Google further added that YouTube TV customers will get a $10 credit if NBC channels are blacked out “for an extended period of time.”
Google says:
NBCUniversal is asking us to pay more than what they charge consumers for the same content on Peacock, which would mean less flexibility and higher prices for our subscribers. We are committed to working with NBCUniversal to reach a fair deal for both sides ahead of our current agreement expiring on September 30. If their content is unavailable for an extended period of time, we’ll offer our subscribers a $10 credit.
As always, there’s probably a lot more at play here behind the scenes than either company admits, but it’ll be interesting to see where this one lands. Prior reporting suggested that Google was looking to get better rates closer to that of other major live TV providers that operate through traditional means rather than streaming. YouTube TV, with an estimated 10 million subscribers, is estimated to be roughly on par with that of Charter (Spectrum) and Comcast.
With the existing deal expiring tomorrow, September 30, we won’t have long to find out what happens.
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