• by Wayne Friedman , Staff Writer, 8 hours ago

Now that YouTube TV is in a position of growing market strength -- much more than traditional pay TV cable TV operating companies, for example -- the dynamics around usual "blackouts" of TV networks and stations is taking on a new phase.

While not the largest pay TV service -- -- Comcast and Charter still lead with around 11.5 million subscribers each -- YouTube TV is closing the gap at just south of 10 million, the third-largest U.S. pay TV service.

While YouTube TV’s market strength keeps growing, with some media companies making carriage deals, YouTube TV is now up against perhaps the most powerful legacy media company -- Walt Disney.

That is why this stoppage of service for ABC Television Network, ESPN and ABC TV stations is a big deal to some analysts.

The focus is on ESPN, the big sports cable network -- still far and away the most expensive network when it comes to a carriage deal that any pay TV service (cable, satellite, virtual or otherwise) pays -- at $10/subscriber per month.

YouTube TV seems to be putting its feet firmly in the sand to see how much Disney will bend in terms of future multi-year deals -- even giving its out-of-luck subscribers a $20 refund for the inconvenience.

But unlike other media companies, Disney has major clear-cut options for its customers -- especially now when it comes to ESPN's newly launched direct-to-consumer (D2C) sports-focused channel that started up in late August.

Growing evidence -- especially from the start of the NBA new season, for example -- shows consumers are ready to move more quickly to streaming services for their individual sports wants and needs.

Reports now show that around 15% of NBA viewers are watching via streaming apps ESPN, Peacock, and Prime Video -- in contrast to single digits a year ago.

In YouTube TV's favor, of course, is its growing overall marketplace dominance from its giant media parent Google -- as well as its own longtime sister streaming service that easily tops all individual streamers, including premium services such as Disney-owned platforms -- Hulu and Disney+.

Could this stalemate give Disney a reason -- a testing ground of sorts -- to see if perhaps some significant number of consumers move away from its own linear TV networks (ABC, ESPN, FX Networks, Freeform, etc.) --- something in the future it needs to reckon -- to its streaming services?

The balance is tricky. But timing is a factor with the starts of both the NFL and NBA seasons.

Lower sports viewing on ESPN and ABC will make an impact due to lower viewership numbers, resulting in less advertising revenue sales.

Who is going to play ball?