YouTube TV, the streaming service owned by internet giant Google, will keep CBS, CBS Sport, and 21 other networks on its platform after securing a short-term contract with US media giant Paramount while negotiations continue over a new distribution agreement.
Paramount initially announced yesterday that its contract with YouTube TV would expire by 11pm Eastern Time if a new carriage agreement was not reached, meaning all networks under the Paramount umbrella would become unavailable.
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The channels at risk of being pulled included CBS stations nationwide, CBS Sports Network, BET, Nickelodeon, Paramount Network, Nickelodeon, Comedy Central, MTV, TV Land, CMT, and VH1.
However, shortly before the deadline, YouTube TV announced a short-term extension to keep the networks on its service, sparing about eight million customers from losing access to the networks.
In a statement, YouTube TV said: “We’ve reached a short-term extension as we work toward a deal with Paramount to keep their content on YouTube TV.
“We appreciate your patience as we continued to negotiate on your behalf. We also value Paramount’s partnership and willingness to work towards an agreement.”
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By GlobalDataThe companies are negotiating financial terms of a new distribution agreement, with Paramount seeking a higher rate and accusing YouTube TV of “attempting to pressure Paramount to agree to unfavorable and one-sided terms."
The media giant added: “We have made a series of fair offers to continue our long-standing relationship with Google’s YouTube TV, providing subscribers access to the full array of Paramount’s entertainment, news and sports programming.”
The dispute has come to a head a month before two of the sports calendar’s biggest events – the first round of the NCAA men’s basketball tournament beginning on March 18, and golf’s Masters, which starts on April 10 – both of which would be available to stream via YouTube TV.
YouTube TV said it would offer subscribers an $8 credit if the dispute keeps Paramount channels off the service for an extended period.
YouTube TV is no stranger to carriage disputes, having suffered a two-day blackout of ESPN and other Disney channels in 2021 before reaching an agreement with the media giant.
Paramount, meanwhile, ended new multi-year deals – with US cable operators Comcast last month and Charter Communications last May – that had given them rights to offer Paramount+ as part of their services.
YouTube TV recently increased its monthly subscription fee from $72.99 to $82.99, the streaming service’s second increase since April 2023.
Launched eight years ago, the streaming service has become a major player, becoming the fourth-largest multi-channel distributor in the US behind Spectrum, Comcast Xfinity, and DirecTV.
In 2022, it secured a tie-up with the NFL for exclusive domestic rights to the out-of-market package of games from 2023 onwards. The seven-year agreement is understood to be worth just over $2 billion annually.
This is the second major carriage dispute to play out in public after media giant Disney pulled its channels on DirecTV last September. The issue was resolved after two weeks but prevented subscribers from watching college football games and a National Football League match between the New York Jets and San Francisco 49ers.
A year earlier, Disney also pulled its channels from Charter Communication’s streaming service for two weeks before reaching a new agreement ahead of its Week 1 Monday Night Football broadcast.
