- The Disney-YouTube drama is heating up and starting to make an impact on local ABC stations.
- Sinclair CEO Chris Ripley has shared that the company has experienced a $1 million loss since the drama began.
- He also said the FCC has launched an investigation into “harmful practices.”
Disney’s dispute with Google over YouTube TV streaming rights has been going on for almost a week, and now the drama is starting to hit local stations, prompting broadcasters to voice their thoughts, particularly Sinclair CEO Chris Ripley.
During the company’s third-quarter earnings conference call, Ripley drew attention to the ongoing dispute and said that Sinclair’s ABC stations are currently being affected by the dispute. He went on to reveal that the company experienced a net loss of $1 million, which Ripley has linked to Google’s conflict with Disney, calling it an “antitrust issue” that will “harm local viewers and local journalism.”
ABC stations, as well as other Disney-owned networks such as ESPN, Disney Channel and Nat Geo Wild, were removed from YouTube TV last week after the two media companies were unable to reach an agreement on requested fees. As a result, popular viewing, including US state and local elections as well as sports coverage, has been blocked for YouTube TV’s 10 million subscribers, but the platform is giving $60 in credit to its customers as compensation.
“As local broadcasters, we have no say in whether our content, and the content we pay to broadcast, will be distributed to local viewers,” Ripley said, referring to over-the-top (OTT) streaming services such as YouTube TV and Hulu + Live TV. “This was clearly not the intent of the Telecommunications Act (of 1996),” he said, adding that broadcasters “should not be able to dictate to us whether or not we can distribute content to YouTube TV.”
Following these comments, Ripley took the time to address the injustice this poses to loyal YouTube TV customers who now face the prospect of having to subscribe to additional platforms just to access ABC content. “Particularly concerning is that consumers are now forced to purchase more streaming services from one party to the dispute to get the content they literally already paid for,” Ripley said.
So how does Sinclair move forward from this? Although it could be a while before Disney and Google are in a position to reach an agreement, Ripley already has a plan of action.
In addition to his previous comments, Ripley revealed that he has discussed the situation with the FCC, which has since opened an investigation into these practices that may be detrimental to local stations. He concluded by stating that “we call on Congress, the FCC and antitrust regulators to review this further and stop the harm to local broadcasters and viewers.”
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