YouTube TV, NBCUniversal warn of blackout amid impending carriage dispute

After news broke that their deal is due to expire at the end of the month, YouTube TV and NBCUniversal released statements Thursday. Both sides warned of a blackout amid the impending carriage dispute.

CNBC was one of the first to report the carriage deal is set to expire Sept. 30, and it would mark the second high-profile dispute for YouTube TV. The company was at odds with FOX earlier this year, but a deal came together just before both the NFL and college football seasons started.

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For football fans, Big Ten games air in primetime on NBC, and Notre Dame football also plays games on the network. NBC is set to air two games Oct. 4 after the deal would expire – Boise State at Notre Dame and Minnesota at Ohio State. Of course, NBC also has the rights to Sunday Night Football in the NFL.

In a statement to CNBC Thursday, NBCUniversal said YouTube TV is looking for an “unfair advantage” regarding its stature in the space. The company also said the dispute could lead to a blackout soon.

“YouTube TV has refused the best rates and terms in the market, demanding preferential treatment and seeking an unfair advantage over competitors to dominate the video marketplace – all under the false pretends of fighting for the consumer,” NBCUniversal said. “The result: YouTube TV customers will lose access to NBCUniversal’s premium programming.”

YouTube TV, however, struck a different tone and said NBCUniversal is asking for a charge higher than what consumers pay for Peacock to get the same content. If a blackout occurs, YouTube TV – which has about 10 million subscribers, according to CNBC – said it would offer subscribers a $10 credit.

“NBCUniversal is asking us to pay more than what they charge consumers for the same content on Peacock, which would mean less flexibility and higher prices for our subscribers,” YouTube TV said in it own statement to CNBC. “We are committed to working with NBCUniversal to reach a fair deal for both sides ahead of our current agreement expiring on September 30. If their content is unavailable for an extended period of time, we’ll offer our subscribers a $10 credit.”

When YouTube TV and FOX locked in a carriage dispute, the two sides eventually came to a short-term agreement just before the deal expired. From there, they reached a long-term deal, keeping the networks on the service.