Paramount Global is warning of a looming carriage impasse with YouTube TV, meaning channels such as CBS, Nickelodeon, Comedy Central and others could go dark Thursday for millions of subscribers.
“We have made a series of fair offers to continue our long-standing relationship with Google’s YouTube TV, providing subscribers access to the full array of Paramount’s entertainment, news and sports programming,” a spokesperson for Paramount said in a statement provided to Deadline.
The statement goes on to note that Paramount has reached renewals with multiple distributors in recent months. Streaming outlets Paramount+ and BET+ also could be removed from YouTube’s channel store, Paramount said.
“YouTube TV is attempting to pressure Paramount to agree to one-sided terms, and these non-market demands may lead to an avoidable loss of Paramount’s networks,” the statement added.
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Paramount Co-CEOs George Cheeks, Chris McCarthy and Brian Robbins, who are already trying to steer the company through a delicate period as it looks to close an $8 billion merger with Skydance Media, communicated the situation to employees in a memo. (Read the memo in full below.)
In a blog post, YouTube TV did not sound especially optimistic about a last-minute reprieve. It said it planned to refund customers $8 for an anticipated lapse in Paramount programming and also suggested that subscribers sign up for Paramount+, which carries a range of the company’s shows.
“We’ve been working hard to reach a fair agreement with Paramount that allows us to keep their channels, including CBS and CBS Sports, on YouTube TV without passing on additional costs to our subscribers,” the post said, noting that talks are ongoing. “Unfortunately, despite our good faith negotiations, we haven’t been successful yet.” (Read it in full below.)
Since launching in 2017, YouTube TV has grown into one of the dominant pay-TV providers in the U.S., reaching 8 million subscribers as of last year. It recently phased in its second price hike in the past year and a half, with the $18 monthly increase reflecting the tech giant’s growing leverage in the marketplace. YouTube TV added NFL Sunday Ticket in 2022, a move that cost several billion dollars but also yielded a bump in subscribers to the pay bundle.
The realm of pay-TV distribution, long prone to squabbles over carriage fees and deal terms that commonly result in blackouts, has become even more contentious in the current era of cord-cutting. Programmers like Paramount are coping with a steady loss of millions of video customers while at the same time trying to scale their direct-to-consumer streaming services. Disney has had major friction with Charter Communications and DirecTV over the past couple of years as those operators have bridled at Disney’s demands for higher fees.
Here is Paramount’s full internal memo:
Team,
Our commitment to partnership is a true differentiator, including our successful track record of getting major deals done that underscore the demand for our premium portfolio of entertainment, news and sports networks. The reality is, you can’t have a successful video product without Paramount, one of the leading media families in TV viewing.
We also continue to modernize and broaden our relationships with distributors to create mutually beneficial value — driving not only our own business forward but also helping to transform the industry to better serve audiences.
In that same spirit of partnership, Paramount has been negotiating a renewal agreement with Google to provide YouTube TV subscribers with continued access to their favorite premium content from BET, CBS, CBS Sports Network, Comedy Central, MTV, Nickelodeon, Paramount Network and more. Unfortunately, Google is unwilling to agree to reasonable terms consistent with the market, choosing to jeopardize the entertainment experience at the expense of consumers.
As a result, tonight we will begin warning subscribers that Google may drop all Paramount channels, in addition to Paramount+ and BET+ from YouTube Primetime Channels, when our contract expires on February 13. Many of you, your families and friends may be YouTube TV subscribers, so please feel free to share a link to KeepParamount.com, which will be updated with relevant news and information.
We remain hopeful that we can reach an agreement that fairly recognizes the full power of our brands and popular programming. Thank you to everyone for your hard work, support and dedication to our audiences and partners. We’ll update you as this situation develops in the coming days.
Best,
George, Chris, Brian
Here is YouTube TV’s blog post:
We’ve been working hard to reach a fair agreement with Paramount that allows us to keep their channels, including CBS and CBS Sports, on YouTube TV without passing on additional costs to our subscribers. Unfortunately, despite our good faith negotiations, we haven’t been successful yet.
We understand how disappointing and disruptive it is to lose channels you enjoy on YouTube TV, so here’s what you need to know:
After February 13, 2025, all Paramount content, including CBS and CBS Sports, will be unavailable on YouTube TV.
This also means that subscribers will not be able to access previous Library recordings from these channels or add-on services including Paramount+ with SHOWTIME and BET+.
We’re committed to providing you with the best possible value and entertainment experience. That’s why we’re fighting for an agreement that avoids passing along additional costs and offers you more flexibility in how you watch your favorite sports and shows.
We’re still actively negotiating with Paramount and will keep you updated on our progress. If we can’t reach an agreement and their content is unavailable for an extended period of time, we’ll offer subscribers an $8 credit. You can still watch Paramount shows and movies by signing up for their streaming service, Paramount+, starting at $7.99 a month.
Paramount is an important partner for us and as you can imagine, this is not the outcome that we want. We’re still in active conversations with Paramount and are hopeful we can come to an agreement to keep their content available on YouTube TV.