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RETRANS DISPUTE

Fubo drops channels from NBC Universal amid fee dispute

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mkeys@thedesk.net

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Key Points

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  • Disney-owned streamer Fubo has pulled channels from rival broadcaster NBC Universal, owned by Comcast.
  • The programming disruption comes amid a dispute over fees paid by Fubo to NBC Universal for the right to redistribute its channels.
  • Affected networks include NBC, CNBC, MS NOW, E!, Bravo, SyFy and USA Network.

Subscribers of sports-centric streaming service Fubo are no longer able to watch channels from Comcast’s NBC Universal on that platform after a distribution agreement between the two companies lapsed on Friday.

In an e-mail sent to subscribers early Friday evening, Fubo said it had engaged in “good faith” discussions with NBC Universal to continue offering their channels on its platform, including cable networks like Bravo, E!, USA Network, SyFy, CNBC and MS NOW, as well as local NBC stations, affiliates and regional sports networks.

“Unfortunately, we believe NBCU has offered terms regarding pricing and packaging that are egregiously above those offered to other distributors,” Fubo said in the note, without offering specifics about the price demands.

As a result of the impasse, Fubo pulled NBC Universal channels around 5 p.m. Eastern Time, the company affirmed. The service promised customers a $15 bill credit if the dispute continues for “an extended period of time,” though it didn’t say how long the two sides will have to be at odds before the credit is offered to subscribers.

Comcast and NBC Universal have not issued a statement on the matter.

NBC Universal, like other companies, have steadily raised their per-subscriber fees charged to pay television services like Fubo over the past few years, leading to programming-related disruptions that can last for days, weeks or, in rare cases, months.

Sports and news channels are among the most-expensive for Fubo to carry — the service can charge well over $100 per month on some of its base programming plans, once regional sports fees and taxes are added to the advertised prices of its packages.

In this particular instance, Fubo may also be holding out for additional terms from NBC Universal, including the ability to offer its sports-inclusive networks in a new, lower-priced tier called Fubo Sports, which launched in August for $56 per month. The package includes sports networks from the Walt Disney Company, which owns a majority stake in Fubo, and peer broadcasters Fox Corporation and Paramount’s CBS.

The dispute comes less than a week before NBC is set to offer its famed Macy’s Thanksgiving Day Parade and a special National Football League (NFL) game involving the Cincinnati Bengals and the Baltimore Ravens later that evening.

Sports fans who want access to NBC Universal channels over streaming have a few other options to consider, including DIRECTV, Google-owned YouTube TV and Disney’s Hulu with Live TV. Dish Network’s Sling TV also offers NBC-owned cable networks in its Sling Blue package, which includes access to local NBC stations in some cities.

The dispute is effectively the second involving Disney in a month, but with the entertainment giant on the other side of the dispute. In October, Disney pulled ABC, ESPN and other channels from YouTube TV in a similar dispute over fees. The dispute was settled last week.

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About the Author:

Matthew Keys

Matthew Keys is the award-winning founder and editor of TheDesk.net, an authoritative voice on broadcast and streaming TV, media and tech. With over ten years of experience, he's a recognized expert in broadcast, streaming, and digital media, with work featured in publications such as StreamTV Insider and Digital Content Next, and past roles at Thomson Reuters and Disney-ABC Television Group.
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