Movies

CBS and other Paramount channels could go dark on YouTube TV

BBG News

On Thursday evening, there’s a possibility that television networks owned by Paramount Global, such as CBS, might stop broadcasting on Google’s YouTube TV, marking another contract dispute between a significant content provider and a distribution platform.

As a movie buff eagerly following the latest developments, I’ve been keeping tabs on the tense negotiations between Paramount and the executives at CBS, BET, Comedy Central, and YouTube TV. If things don’t go as planned by 8 PM PT this Thursday, it seems we might be in for a blackout, which is certainly not what I or many other viewers want!

Our leaders expressed optimism that we’ll strike a deal which appropriately values the strength of our brands and well-liked shows, as they shared this sentiment in a memo to our team.

YouTube TV has expanded into one of the entertainment industry’s leading multi-channel providers, boasting a customer base of over 8 million.

In a recent statement, YouTube shared that they’ve put in considerable effort to strike a balanced deal with Paramount so their channels like CBS and CBS Sports can remain on YouTube TV without burdening subscribers with extra fees. Regrettably, despite our sincere attempts at negotiations, we haven’t managed to reach an agreement as of now.

In 2023, YouTube TV saw a surge in subscribers when it picked up the NFL’s “Sunday Ticket” offering, as this package became too expensive for its long-term holder, DirecTV. However, the hefty $2 billion yearly fee for Sunday afternoon NFL games increased the operational costs of YouTube TV, causing Google to closely examine other contract expenses.

Hollywood Inc.

A prominent tech company secures the broadcasting rights for the off-air Sunday games, a service previously provided to DirecTV subscribers since 1994.

Disputes over cable channel fees have grown more frequent within the television sector, demonstrating that even tech giants like Google encounter the financial hurdles experienced by conventional broadcasters such as DirecTV, Dish Network, Charter Spectrum, and Comcast Xfinity.

YouTube TV is providing cheaper deals to attract customers who are switching from DirecTV and other services.

Last month, YouTube TV raised its charge to customers to $82.99 a month, up from $72.99 a month.

The company announced that it will provide YouTube TV subscribers with an $8 monthly discount if negotiations with Paramount fail and their content remains unavailable for a prolonged duration, as stated in a blog post. Google also mentioned that Paramount is a valuable partner, and this situation isn’t the desired outcome.

Hollywood Inc.

YouTube reported an increase in viewers tuning into live events such as Coachella and brief video content on television screens. Additionally, sports broadcasts, like the NFL, have seen a rise in audience numbers.

This year, Paramount began negotiations at a disadvantage compared to the position it was in when YouTube TV first debuted eight years ago.

paramount’s channels like Nickelodeon and MTV have seen significant subscriber losses due to a shift towards streaming services such as Netflix, Disney+, and Paramount+. In August, Paramount had to record a $6-billion loss because the value of their cable television assets has decreased. The company has faced multiple rounds of layoffs as a result.

Among Paramount’s most attractive offerings are their news and entertainment content, such as “Tracker,” “Ghosts,” and “The Late Show with Stephen Colbert,” which are among CBS’s primary attractions.

Hollywood Inc.

Sony, based in Culver City, announced they will deliver fresh episodes straight to broadcasting networks, intensifying their conflict with CBS over contracts. In response, CBS, owned by Paramount, declared they will take legal action to prevent Sony’s actions.

Last July, Shari Redstone, the major shareholder of Paramount, agreed to sell the company to Skydance Media headed by David Ellison in a $8-billion transaction. However, this sale has encountered an obstacle at the Federal Communications Commission (FCC). The FCC needs to approve the transfer of CBS television licenses to Ellison before the deal can be finalized.

Google’s disagreement now ranks among Paramount’s most pressing business issues. Meanwhile, CBS finds itself engaged in a battle with Sony Pictures Television to keep the distribution rights for the massively successful game shows “Jeopardy!” and “Wheel of Fortune.

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2025-02-13 22:02

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