YouTube TV retains NBC, received’t should bundle Peacock as firms strike new deal

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Enlarge / NBC’s emblem on the NBC Tower in Chicago on March 25, 2011.

Getty Pictures | Raymond Boyd

Replace on October 2 at 1:35 pm ET: YouTube TV and NBC as we speak introduced a brand new contract that may let NBC channels stay on YouTube TV. “We’re thrilled to share that we have reached a deal to proceed carrying the complete NBCUniversal portfolio of channels. Meaning you will not lose entry to any of their channels, and YouTube TV will proceed to supply 85+ networks for $64.99,” YouTube stated. NBC confirmed the deal in an announcement to Ars.

YouTube confirmed to Ars that the brand new contract is a multi-year deal however neither firm revealed the precise size. The edges beforehand agreed to a brief extension of the previous contract to keep away from a blackout and have been then in a position to finalize a brand new channel-carriage settlement.

The brand new contract doesn’t require YouTube TV to bundle NBC’s Peacock on-line service, an NBC supply confirmed to Ars. NBC beforehand sought a YouTube TV/Peacock bundle however dropped the demand earlier within the negotiations. The NBC supply stated that Peacock was not a “main half” of the negotiations with YouTube TV however that Peacock is “part of the dialog” in all negotiations with companions.

Unique story as revealed on October 1:

YouTube TV and NBCUniversal are nonetheless at odds in negotiations over a brand new contract that might permit NBC channels to stay on the Google-owned streaming service. The prevailing contract was set to run out at 12 am ET as we speak, however the firms agreed to a brief extension that stops a blackout for now.

“NBCUniversal and YouTube TV have agreed to a brief extension whereas events proceed talks. NBCUniversal is not going to go darkish on YouTube TV at midnight japanese tonight,” NBC stated in an announcement supplied to Ars final evening.

NBC declined to say how lengthy the extension is, and YouTube TV proprietor Google didn’t remark. About 15 NBC-owned channels and eight regional NBC Sports activities networks may nonetheless go darkish on YouTube TV if the businesses do not agree on phrases earlier than the extension expires.

NBC’s uncommon Peacock demand

Channel blackouts and contentious carriage negotiations have lengthy been a part of the TV business, although some issues have modified now that on-line streaming providers like YouTube TV compete towards cable and satellite tv for pc. The Comcast-owned NBCUniversal got here up with an uncommon tactic on this spherical of negotiations, demanding that YouTube TV bundle Peacock, NBC’s personal streaming service. NBC has struggled to persuade particular person subscribers to buy the $5 or $10 premium tiers of Peacock, and the corporate is “falling again on their legacy enterprise mannequin of wholesale bundling to drive distribution,” as investor analysis agency LightShed Companions wrote.

Peacock is unlikely to be in a ultimate contract between NBC and YouTube TV, as we reported Tuesday. An NBC supply who’s accustomed to the negotiations advised Ars on the time that NBC’s Peacock demand was “out” of the negotiations—however the supply would not say definitively that NBC would not attempt to put Peacock again on the desk. Google had objected, saying {that a} bundle would drive subscribers to pay twice for a similar programming as a result of Peacock has a lot of the identical content material as NBC channels.

Even when Peacock is out of the combination, the edges nonetheless should agree on an general worth and different issues. YouTube TV is searching for a most-favored-nation clause, saying that it desires contractual protections making certain that YouTube TV would not pay extra for NBC channels than equally sized TV suppliers do. Google stated it is going to minimize the YouTube TV month-to-month worth from $65 to $55 if NBC channels are blacked out and identified that clients can join Peacock individually.

NBC claimed it’s simply “searching for truthful charges from Google” and tried to strain the corporate by organising a “You Want Channels” web site that warns customers, “YouTube TV could drop your favourite channels.” The NBC web site urges customers to complain to YouTube TV and to think about switching to different TV suppliers.

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