Photo illustration of the YouTube TV logo displayed on a smartphone, with the YouTube logo in the background.
Disney content, including channels like ABC and ESPN, was removed from Google's YouTube TV overnight after the two companies failed to renew a streaming contract.
"Despite our best efforts, we have not been able to reach a fair deal, and starting today, Disney programming will not be available on YouTube TV," the platform said in a statement.
More than 20 channels would be removed from YouTube TV, the company said, adding if the content is unavailable for an extended period of time, the company would offer users a $20 credit.
Disney said in a statement, "Google's YouTube TV has chosen to deny their subscribers the content they value most by refusing to pay fair rates for our channels, including ESPN and ABC."
"With a $3 trillion market cap, Google is using its market dominance to eliminate competition and undercut the industry-standard terms we've successfully negotiated with every other distributor. We know how frustrating this is for YouTube TV subscribers and remain committed to working toward a resolution as quickly as possible," Disney said.
The two sides had been engaged in negotiations but were unable to reach a new distribution agreement before their existing contract expired Oct. 30 at 11:59 p.m. ET.
Disney warned last week it could result in a content blackout.
In a Thursday statement on its official blog, YouTube argued Disney had "used the threat of a blackout on YouTube TV as a negotiating tactic to force deal terms that would raise prices on our customers," and that Disney was now following through on that threat.
"We will not agree to terms that disadvantage our members while benefiting Disney's own live TV products," YouTube TV said in a post on its help center webpage. Disney's live TV offerings include Hulu + Live TV and Fubo .
"We know how disruptive it is to lose channels you enjoy, and we're committed to continuing to work with Disney to reach an agreement," YouTube said in its statement.
YouTube TV pays broadcasters to stream their channels and has been engaged in several tense negotiations over contract renewals in recent months.
Last month, NBCUniversal content was nearly removed from YouTube TV before the companies reached an agreement after a temporary extension, preventing shows like "Sunday Night Football" and "America's Got Talent" from being pulled.
CNBC reported last week that Disney was willing to offer YouTube TV a distribution agreement that would give some subscribers access to Disney+, Hulu and ESPN+ for no extra charge. Disney has previously offered similar terms to Charter, the largest U.S. pay TV provider by subscribers.
However, YouTube asked for Disney's streaming content to be ingested into YouTube TV, giving customers the ability to view programming on Disney+, Hulu and ESPN+ without leaving the platform, according to a source familiar with the negotiations.
Disney had rejected that proposal and had no plans to budge on the request, people familiar with the company's thinking told CNBC.
The recent clash between Disney and YouTube has an added twist, after YouTube hired former Disney distribution executive Justin Connolly earlier this year, prompting Disney to file a breach-of-contract lawsuit.
Connolly has recused himself from the discussions, CNBC previously reported, according to the people familiar with the process. Disney and YouTube reportedly settled the lawsuit.
YouTube is the top U.S. media distributor by audience engagement, capturing over 13% of TV watch-time in July, according to Nielsen. It is also on track to be the biggest media company by revenue in 2025, beating Disney, analysts at MoffettNathanson told CNBC.
— CNBC's Alex Sherman contributed to this report.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant would become the new parent company of CNBC upon Comcast's planned spinoff of Versant.
Clarification: This article has been updated to clarify that NBCUniversal content was nearly removed from YouTube TV last month before those companies reached an agreement.