If Disney channels remain suspended for an “extend period of time”, YouTube TV said it would offer subscribers a $20 credit.
YouTube and Disney-owned Hulu are among the biggest online TV platforms in the US.
Their stand-off follows similarly contentious talks this year between YouTube and other media companies, which had also threatened to limit the shows available to YouTube TV subscribers.
Google struck a deal at the last minute with Comcast-owned NBCUniversal earlier this month to keep shows like “Sunday Night Football” on YouTube TV. It has also reached agreements with Paramount and Fox in recent months.
In separate statements, both Google and Disney said they were working toward a resolution to restore Disney content to YouTube TV.
Still, the companies remain divided on fees.
“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,” a Disney spokesperson said in a statement.
But YouTube said in a statement that Disney was proposing “costly economic terms” that would lead to higher prices for YouTube TV customers and limit their options for content, benefiting Disney’s own live TV offerings like Hulu+ Live TV.