YouTube TV and NBC avoid blackout for now but still disagree in negotiations

YouTube TV and NBCUniversal are still at odds in negotiations over a new deal that would allow NBC channels to stay on the Google-owned streaming service. The existing contract was scheduled to expire at midnight ET today, but the companies have agreed to a short extension that prevents a blackout for now.

“NBCUniversal and YouTube TV have agreed to a short extension while the parties continue talks. NBCUniversal will not shut down on YouTube TV at midnight EST tonight,” NBC said in a statement provided to Ars last night.

NBC declined to say how long the extension will last, and YouTube TV owner Google has not commented. About 15 NBC-owned channels and eight regional NBC Sports networks could still disappear on YouTube TV if the companies do not agree on terms before the extension expires.

NBC’s Unusual Peacock Request

Channel cuts and contentious distribution negotiations have long been part of the TV industry, although some things have changed now that online streaming services like YouTube TV compete with cable and satellite. Comcast-owned NBCUniversal has offered an unusual tactic in this round of negotiations, demanding that YouTube TV consolidate Peacock, NBC’s own streaming service. NBC has struggled to convince individual subscribers to buy Peacock’s $ 5 or $ 10 premium tiers, and the company “is falling back to its old wholesale bundling business model to boost distribution,” as the company wrote. LightShed Partners investor search firm.

Peacock is unlikely to be in a final deal between NBC and YouTube TV, as we reported on Tuesday. An NBC source familiar with the negotiations told Ars at the time that Peacock’s request from NBC was “out” of the negotiations, but the source would not definitively say that NBC would not try to put Peacock back on the table. Google had objected, saying a plan would require subscribers to pay twice for the same programming because Peacock has much of the same content as NBC channels.

Even though Peacock is out of the lot, the parties have yet to agree on an overall price and other considerations. YouTube TV is seeking a most-favored-nation clause, saying it wants contractual protections that ensure YouTube TV doesn’t pay more for NBC channels than similar-sized TV providers. Google said it would reduce the monthly price of YouTube TV from $ 65 to $ 55 if NBC channels were blocked and stressed that customers can sign up for Peacock separately.

NBC claimed it was “just looking for fair rates from Google” and tried to pressure the company by setting up a “You Need Channels” website that warns users: “YouTube TV can remove your favorite channels.” NBC’s website urges users to complain to YouTube TV and consider switching to other TV providers.