Los Angeles Above all In the most recent contract dispute between a big distributor and a major programmer, international television networks, including CBS, may shut down Google’s YouTube TV on Thursday night.
As negotiations with YouTube TV executives came to a close, Paramount started alerting viewers of Comedy Central, BET, and CBS that a blackout was likely. A new carriage arrangement must be signed by Thursday at 8 p.m. PT.
In a letter to staff, Paramount executives expressed their continued optimism that they could come to a consensus that equitably acknowledges the full potential of their brands and well-liked programming.
With 8 million users, YouTube TV has become one of the most well-known multichannel distributors in the market.
In a blog post, YouTube stated, “We have been putting a lot of effort into coming to a reasonable agreement with Paramount that permits us to maintain their channels, including CBS and CBS Sports, on YouTube TV without imposing additional costs on our subscribers.” Regretfully, we haven’t yet succeeded in our good faith negotiations.
In 2023, YouTube TV gained more subscribers when it replaced the NFL Sunday Ticket subscription, which had grown too costly for longstanding rights holder DirecTV. However, the cost of running YouTube TV increased due to the almost $2 billion annual fee for the Sunday afternoon NFL games, which prompted Google to examine other contract expenses.
In the television industry, disputes over cable channel fees are becoming more frequent. This debate demonstrates that Google is not exempt from the financial difficulties that traditional distributors like Comcast Xfinity, DirecTV, Dish Network, and Charter Spectrum are facing.
To entice users to switch from DirecTV and other services, YouTube TV has run cheaper discounts.
YouTube TV increased its monthly subscription fee from $72.99 to $82.99 last month.
In a blog post, Google stated that if an agreement cannot be reached and [Paramount] material is missing for a long time, the company would give YouTube TV subscribers a $8 credit per month. We value Paramount as a partner, and as you might guess, we do not want this to happen.
Compared to when YouTube TV first began eight years ago, Paramount had a weaker hand going into this year’s negotiations.
A shift to video-on-demand streaming services like Netflix, Disney+, and Paramount+ has resulted in the loss of millions of subscribers to Paramount’s cable channels, including Nickelodeon and MTV. A $6 billion write-down was made by Paramount in August to reflect the deteriorating worth of its cable television business. The business has seen multiple rounds of layoffs.
The main attraction for Paramount is CBS, with its news and entertainment shows like “Ghosts” and The Late Show With Stephen Colbert.
Last summer, Shari Redstone, the majority shareholder of Paramount, agreed to sell the business to David Ellison’s Skydance Media. The Federal Communications Commission has encountered a problem with the $8 billion agreement. For the deal to proceed, the agency must approve Ellison’s transfer of the CBS television licenses.
The conflict with Google turns into Paramount’s most recent business issue. The distribution rights to Sony’s wildly successful Jeopardy! and Wheel of Fortune are also being contested by CBS and Sony Pictures Television.
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