U.S. streaming blackout surged into focus after Disney-owned channels—including ABC, ESPN, FX, and National Geographic—vanished from YouTube TV when the companies failed to finalize a new carriage deal before the contract expired at midnight on October 30. The loss of more than 20 networks marks one of the most significant breakdowns between a content provider and a digital distributor in the streaming era.

“YouTube TV subscribers will no longer have access to Disney programming as we have not reached a fair agreement,” the platform said early Friday. The service added that customers would receive a $20 bill credit if the U.S. streaming blackout continues.

Disney responded sharply, accusing YouTube TV of refusing to pay fair market pricing. “Google’s YouTube TV has chosen to deny subscribers the content they value most by rejecting fair rates for our channels,” Disney said.

Disney executives Dana Walden, Alan Bergman, and Jimmy Pitaro also told employees that YouTube TV removed previously recorded Disney programs. “Their choices show how little regard they have for their customers,” the memo stated, alleging that YouTube seeks to use its power to suppress competition and devalue the content that helped build its platform.

YouTube TV countered that Disney “wielded the threat of a blackout as a negotiation tactic” to demand higher carriage fees, which the platform said would harm subscribers while benefiting Disney’s own streaming bundles, including Hulu + Live TV and ESPN+.

The U.S. streaming blackout comes at a crucial moment for sports fans as YouTube TV subscribers risk missing major broadcasts such as college football and “Monday Night Football.” ESPN and its affiliated channels remain among the service’s highest-viewed networks.

Disney had cautioned that a blackout was possible, and negotiations reportedly stalled over how Disney’s streaming apps would integrate into YouTube TV’s interface. Sources told CNBC that YouTube pushed for direct access to Disney+, Hulu, and ESPN+ within its platform, a proposal Disney rejected to keep its services separate.

The conflict reflects broader tensions between legacy media firms and tech platforms as streaming dominates distribution. YouTube, now the largest media distributor in the U.S. with over 13% of TV watch time, is projected to surpass Disney in total media revenue by 2025.

Earlier this year, YouTube hired former Disney executive Justin Connolly, prompting Disney to file a breach-of-contract lawsuit. Though settled, Connolly has since removed himself from active negotiations.

Despite the U.S. streaming blackout, both companies say they are open to continued discussions. YouTube TV noted the disruption to viewers, while Disney insists its channels justify the rates it seeks—setting the stage for a high-stakes battle over the future of streaming distribution.