Consumers are losing as YouTube TV and Disney black out channels while they negotiate pricing plans. Although YouTube is offering refunds for disrupted services, subscribers are missing out on the games they want to watch. Senator Elizabeth Warren (D-Maine) has been quick to throw her “big is bad” flag, but this is the wrong call. In a post on X, Senator Warren wrote, “When companies get too big, they have the power to cut off your favorite channels.” But blaming the blackouts on Big Tech malevolence is completely misguided. The current drama between Disney and YouTube TV is simply the competitive marketplace at work, and regulators need not get involved.
The blackouts are a symptom of fierce competition and shifting market dynamics. The entertainment industry is in the midst of a transformation that moves toward streaming. For regulators to halt this progress or unwind it only entrenches legacy technologies, as more consumers increasingly prefer modern new mediums for their sports.
The large media companies absolutely should get their acts together and stem the short-term consumer pains, but regulators need not get involved, or else they risk longer-term consumer angst. When government officials commented on a similar negotiation breakdown in 2013, then-FCC Chair Mignon Clyburn explained media companies were responsible for “putting their audience’s interests above other interests.” She rightly argued that the Commission should not intervene where market forces could most effectively punish companies that harmed their consumer base. In a recent post on X, current FCC Chairman Carr urged the companies to “get a deal done and end this blackout,” but has stopped short of regulatory action—as is proper.
Blackouts—and the frustration they bring—are nothing new in the entertainment world. As far back as 1983, ESPN had similar blackout troubles when it tried to impose a $0.10, then later $0.13, fee per subscriber per month on broadcast companies. Then, in 2013, blackouts came when CBS asked $2 per subscriber per month from Time Warner Cable. Also in 2013, ESPN and DISH were unable to negotiate a continuation of a 2005 pricing agreement, resulting in further blackouts. And just last year, in 2024, Disney and DirecTV blacked out football games when they failed to reach an agreement on new contracts. In each case, these blackouts came during price negotiations, as existing agreements fell through, or as new technology rivaled incumbent broadcasters. As Table 1 shows, these kinds of negotiation struggles are nothing new, and though not an exhaustive list, they affect all types of entertainment, from sports to comedy to news.
A Brief History of Negotiation-Breakdown-Induced BlackoutsToday, these blackouts are likewise happening due to technology and price negotiations colliding. As recent analysis from the American Action Forum shows, advancements in broadband technology have given rise to streaming platforms like Netflix, YouTube, and Disney’s own Disney+ service, which compete directly with legacy cable for viewers’ attention. Because these services operate over any provider’s internet service, many consumers have decided to “cut the cord,” exchanging expensive cable bundles for individual streaming services.
Do consumers lose when rocky negotiations blackout their favorite channels? Absolutely. But this is not a case in need of federal intervention. Such blackouts have occurred before and are symptomatic of market structures changing in response to consumer preferences. Senator Warren does not offer a solution—the issue is not hers to solve. Her post is only evidence of a knee-jerk reaction to cry “Big is Bad” when markets stumble, regardless of the underlying cause. The record clearly shows that not every case of consumer angst needs to invoke the specter of the Big Tech boogeyman. While Disney and YouTube TV deliberate, the feds shouldn’t throw any more flags on the play.
Nate Karren is a policy analyst with the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, follow us on X @ConsumerPal.