Google’s YouTube TV Reaches New Deal to Keep Paramount Content Available

Finally, YouTube TV subscribers may heave a sigh of relief after a long tussle as Google and Paramount came to an agreement just in time to keep all of the latter’s content under the streaming service. As reported late Saturday, this particular deal would guarantee full availability without interruption to popular networks such as CBS and CBS Sports as well as Nickelodeon, among others, for subscribers of YouTube TV.

For a few moments, the nerve wracking experiences of YouTube TV subscribers seem just about to play out, hitting the power button only to find CBS, Nickelodeon, and their Paramount favorites nowhere to be seen in the digital realm. Just then, panic was about to set in and some were even considering the unthinkable cable. This was when Google and Paramount decided to inject a bit of drama into the agonizing contract fight by relenting and coming to terms, thus preserving Paramount’s channels on YouTube TV. The part of the deal seems to be an expanded streaming relationship, possibly with Paramount + more tightly integrated into Google’s ecosystem.

Deal for Subscribers:                              

Only a few days earlier, YouTube TV went as far as warning users that had almost cleared all of the Paramount content as it approached the final deadline of February 13, and emphasized that this collection of programming will soon be for replacement. Google, however, was still working on the signing of a deal that would prevent their subscribers from having to endure any new increases in the subscription price and give them more flexibility in the bundling of channels.

While the deal itself is still under wraps, a Paramount spokesperson defined it as an “expanded streaming relationship” and said that, “not only will YouTube Primetime Channels continue to offer streaming services Paramount +, with Showtime and BET+ as add-ons, but Google also gets the right to make Paramount + available to qualifying YouTube TV customers”.

Negotiations under High Stakes:

Neither is this the first time that YouTube TV has entered into major contracts that have involved high profile contract disputes with media giants. Previously, Google lost Disney and came almost to the brink of losing key Disney owned networks before striking a last minute deal. Negotiations of the same kind between Google and Paramount demonstrate what has continuously been often called strains between the traditional media and the streaming media regarding content distribution and the rapidly changing tastes of viewers.

In its own announcement, Google said, “We’re happy to share that we’ve reached a deal to continue carrying Paramount channels, including CBS, CBS Sports, Nickelodeon and more … To our subscribers, we appreciate your patience while we negotiated on your behalf”. At the time, Google said it was “fighting for an agreement that avoids passing along additional costs and offers [subscribers] more flexibility in how you watch your favorite sports and shows.” 

In a harsh internal memo, Paramount’s co-CEOs, George Cheeks, Chris McCarthy, and Brian Robbins, declared Google as “unwilling to agree to reasonable terms consistent with the market, choosing to jeopardize the entertainment experience at the expense of consumers”. They further cited Paramount’s importance, saying, “The reality is, you can’t have a successful video product without Paramount, one of the leading media families in TV viewing”.

Broader Implications:

The immediate takeaway for YouTube TV subscribers is quite simple, no more sudden blackouts of their favorite Paramount channels but, the implications are broader. The giant content and pricing war between technology champions like Google and legacy studio Paramount is still far from over. Under this new agreement, YouTube TV subscribers can breathe easy with Paramount channels CBS, Nickelodeon, and CBS Sports will remain on board.

As streaming platforms and media giants engage one another in their tug of war over contracts and revenues, there is no doubt that the real winners or losers are always viewers. For now, at least, they can be left to relax and enjoy their favorite shows until the next round of negotiation. Similar arguments about content availability, pricing, and consumer choice will continue to occur as streaming services dominate the entertainment landscape.

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