Google described the blackout of CBS, NBC, ABC and Fox stations on YouTube TV as a violation of its Terms of Service initially. This messaging caused some YouTube TV customers to believe that they personally had somehow done something wrong to violate YouTube TV’s terms. The issue was then described as a glitch that’s being worked out. Is the glitch something the size of a meteor or the size of a paperclip?

This is speculative but earlier in 2023 a group of local TV station owners united to ask the FCC to classify all live streaming services, which would include YouTube TV, Hulu and others, in a similar category as traditional cable TV companies, or Multichannel Video Programming Distributors. Cable companies must negotiate directly with local affiliate station owners so that they can carry local news stations. The live streamers have gone around this to cut deals with network owners like Peacock for CBS that gave them the ability to stream most local stations. If successful, this request by local TV station owners would require live streaming services to add or leverage substantial resources to negotiate individual deals so that they could stream local news.

Losing local news and local sports coverage that affiliate stations provide in each market would be a big negative for some subscribers. This issue may reach temporary resolution but it provides a very good example of the fierce competition among all parties involved for proper monetization of valued content in new distribution channels.