It’s Day 7 of the blackout of ESPN, ABC and other Disney networks on YouTube TV — and the patience of the internet TV service’s subscribers is wearing thin. Disney’s nets went dark on YouTube TV service just before midnight ET on Thursday, Oct. 30, after Disney and Google were far apart on a deal before the expiration of the previous contract. The main beef is price: Google says Disney is demanding an unprecedented fee increase for the full suite of ESPN channels, ABC and more while Disney says the tech giant has been “refusing to pay fair rates for our channels.”
For YouTube TV subscribers, the irritation has been growing higher every day the blackout goes on, after they have missed a week of programming including last Saturday’s college football on ESPN and “Monday Night Football.”
According to a new survey, when YouTube TV subscribers were asked what they have done or plan to do in response to the Google-Disney standoff, 24% said they have already canceled or intend to cancel their YouTube TV subscription because the service “no longer delivers the core content they signed up for.” That’s according to a survey of about 1,100 U.S. consumers fielded this week by market research firm Drive Research. In addition, 30% of YouTube TV subs said they have subscribed or plan to subscribe directly to ESPN Unlimited or Hulu + Live TV to keep access to the sporting events and networks they want to watch. About 22% said they use or (expect to use) someone else’s login for ESPN or Hulu + Live TV — while 15% admitted they have used or may consider an illegal stream.
If the blackout drags on, YouTube TV’s churn is expected to spike dramatically: 82% of survey respondents said they are “likely” to cancel their subscription if the Disney-Google dispute is not resolved soon (although the survey didn’t ask about a specific timeframe). Note, however, that there is a difference between people saying they will cancel a service and those who actually do. When asked who is to blame, 58% of those surveyed said both Disney and Google are equally at fault, while 37% point the finger at Disney and 5% blame Google. The bottom line is that YouTube TV customers are fed up — they’re tired of being the bargaining chip in a feud between two giant corporations. YouTube TV is estimated to have more than 10 million subscribers, ranking it as the largest virtual pay-TV provider in the U.S. Next are Disney’s Hulu + Live TV and Fubo, which recently merged, with almost 6 million subscribers in North America. Most YouTube TV customers (56%) said they signed up to the service primarily to watch live sports, followed by the overall channel lineup (43%) and access to ABC (33%). About 27% said YouTube’s NFL Sunday Ticket also played a role; Sunday Ticket is also available from YouTube without a YouTube TV subscription. Price and features matter too: 51% cited a lower price for YouTube TV than cable or other pay-TV options, while 47% said they value the ability to share the service with household members or use multiple streams and 40% signed up for the picture quality and reliability. YouTube says YouTube TV customers will receive a one-time $20 credit if Disney networks are unavailable for an “extended” amount of time. (According to a YouTube rep, the company has not shared anything specific in terms of timing for the credit but said subscribers will receive an email once the credit is available.) Many YouTube TV customers, though, said a $20 credit would not be enough to prevent them from canceling: Only 30% agreed it would, while 44% disagreed and 26% were neutral, according to the survey. That shows that “a one-time credit does not match the emotional and practical loss of ESPN and ABC for most subscribers,” according to Drive Research. The results are based on an online survey conducted by Drive Research with 1,107 consumers who use streaming and live TV services. The company said the sample size carries a margin of error of approximately +/- 3% at the 95% confidence level.