Disney warns ESPN that other networks may appear on YouTube TV at the end of the month

Just one month after reaching a deal with NBCUniversal to avoid dropping its networks, YouTube TV is facing another potential blackout — this time with… Disney.

Disney said Thursday that it will begin playing generic messages to YouTube TV subscribers alerting customers that the company’s networks, including ABC and ESPN, will be dropped from the service if the two sides cannot reach a new distribution agreement, which expires on October 30 at 11:59 p.m. ET.

“This is the latest example of Google exploiting its position at the expense of its customers,” a Disney spokesperson said in a statement. “If we don’t reach a fair agreement soon, YouTube TV customers will lose access to ESPN, ABC, and all of our premium programming — including the NFL, college football, NBA, and NHL seasons — and more.”

Disney began running general ads on YouTube TV at 5 p.m. ET.

As with NBCUniversal, YouTube TV is demanding better prices for Disney programming, according to people familiar with the discussions. YouTube TV has about 10 million subscribers and wanted more favorable terms given its size, the people said.

“We have worked in good faith to negotiate a deal with Disney that pays them fairly for their content on YouTube TV,” a spokesperson for the service said in a statement. “Unfortunately, Disney is proposing costly terms that would raise prices for YouTube TV customers and give our customers fewer choices, while benefiting from Disney’s own live TV products — like Hulu + Live TV and soon Fubo. Without an agreement, we will have to remove Disney content from YouTube TV and if it remains unavailable For an extended period of time, we will be offering subscribers a $20 credit.”

YouTube TV and NBCUniversal first reached a temporary extension to avoid a blackout before signing a final deal a few days later.

Two years ago, Disney reached an unusual distribution agreement with Charter, the largest U.S. pay-TV provider by number of subscribers, that gave some Charter subscribers access to Disney+, Hulu and ESPN+ at no additional charge. Disney is willing to offer the same terms of the charter agreement to YouTube TV, two of the people said.

YouTube TV is once again asking to accommodate streaming content from Disney, giving customers the ability to watch shows on Disney+, Hulu and ESPN+ without leaving the YouTube platform, according to a person familiar with the negotiations. YouTube TV also requested this in its negotiations with NBCUniversal and was denied. Likewise, Disney has no plans to approve that request, according to people familiar with the company’s thinking.

The conflict between Disney and YouTube has an additional element of conflict. YouTube hired former Disney distribution executive Justin Connolly earlier this year, prompting Disney to file a lawsuit for breach of contract. Connolly has distanced himself from those discussions, according to people familiar with the process.

Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant will become the new parent company of CNBC based on Comcast’s planned spin-off of Versant.