Google’s streaming pay television service YouTube TV will offer bill credits to customers to offset the loss of Paramount-owned channels if the companies are unable to reach an agreement by the end of Thursday.
The offer will lower customer bills by $8 for at least the first month of the dispute if Paramount and YouTube TV are unable to reach an agreement “for an extended period of time,” the service said in an email to subscribers reviewed by The Desk. The credit is intended to offset the cost of Paramount Plus, the streaming service owned by Paramount that offers content from CBS and some of Paramount’s cable channels. It wasn’t clear from the e-mail if the $8 credit would be applied during each month of the dispute, or only once.
On Wednesday, executives at Paramount said the company was struggling to renew its carriage agreement with Google and YouTube that covers distribution of 23 local broadcast stations and cable networks, including CBS-owned TV stations and channels like Comedy Central, MTV, Nickelodeon, VH1, BET, Paramount Network and TV Land. It also involves the re-selling of Paramount Plus, Showtime and BET Plus subscriptions through YouTube TV and YouTube Primetime Channels.
A Paramount spokesperson said Google and YouTube were pushing for “one-sided terms” that it described as “non-market demands,” without offering any additional specifics. The channels and streaming services will be dropped from YouTube TV and YouTube Primetime Channels by the end of Thursday, February 13 if both sides are unable to reach a new agreement or agree to a temporary extension of its prior contract.
In a memo to employees obtained by The Desk, Paramount’s co-CEOs — George Cheeks, Chris McCarthy and Brian Robbins — said they were still confident that a deal would be reached with Google and YouTube.
“We remain hopeful that we can reach an agreement that fairly recognizes the full power of our brands and popular programming,” the co-CEOs said.
Most shows offered by Paramount on CBS and its cable networks are available through the streaming service Paramount Plus, which also includes a live stream of local CBS stations and affiliates in its premium tier. Paramount-owned local channels and national cable networks are also offered on other cable-like services, including DirecTV Stream, Hulu with Live TV and Fubo. Some Paramount-owned channels like Comedy Central, Nickelodeon, MTV and TV Land are also available through the wallet-friendly streaming service Philo, which offers a seven-day free trial.
