The news: Disney and YouTube TV struck a new carriage agreement late Friday, ending a nearly two-week clash that made more than 20 Disney channels, including ESPN and ABC, unavailable on the pay TV service.

As part of the new deal, YouTube TV subscribers will get access to Disney’s new direct-to-consumer ESPN Unlimited at no extra cost by the end of 2026. Additionally, customers will be able to access ESPN Unlimited without leaving the YouTube TV platform—resolving one of the biggest points of conflict between the companies.

Why this matters: The YouTube-Disney carriage dispute marks yet another turning point in streaming power dynamics. Morgan Stanley estimated that Disney lost $30 million weekly during the blackout, underlining YouTube’s streaming reach.

• In the last two years, legacy networks with streaming offerings like Disney and NBCUniversal were able to pressure linear pay TV providers into favorable carriage agreements. But YouTube TV—which has had high-profile carriage disagreements with both networks this year—is showing there’s a bigger power player in town.
• YouTube TV is the largest digital pay TV provider in the US with 22.4 million viewers this year, per our forecast. NFL Sunday Ticket has helped the service grow far faster than competitors: We expect YouTube TV viewers to reach 25.6 million by 2029, while Disney-owned Hulu+ Live TV will go from 11.4 million viewers this year to 12.2 million by 2029.

The data angle: One of the conflict’s major sticking points was whether ESPN Unlimited content would be made available to YouTube TV viewers in-platform at no extra cost—an obvious benefit for YouTube TV’s consumer appeal. But Disney wanted to keep those consumers within its own flywheel for greater control over advertising revenues and user data.

By offering ESPN content within YouTube TV, the pay TV provider gains access to a great array of viewer signals on sports content—the most in-demand broadcast content for advertisers—which could make it a more appealing partner for brands going forward.

What this means for brands: The outcome reinforces that YouTube is one of the most powerful forces in digital video, pay TV, and streaming. With a pay TV audience that eclipses its competitors and a viewership that is increasingly moving to digital platforms, YouTube TV is well positioned to capture sports-hungry audiences and the advertisers eager to reach them. The company’s extensive advertising ecosystem and variety of consumer signals across its video offerings makes it a strong option for brands of all sizes.