Disney does this every time it negotiates its contract, and it is always during Football season. I used to work for Sling they did this to us twice while I worked there.
This is how live television actually works these days. Disney has a pile of channels that they can't hardly give away. Remember, we aren't talking about shows (although most shows don't matter either). We are talking about channels. When was the last time you channel surfed trying to find something on the air? My guess is that it was decades ago. Well, all those channels still exist, and the live television providers still pretend that someone cares whether re-runs of Wizard of Waverly Place is playing on whatever channel reruns of that show play on these days.
It's 2025. Sane people watch pre-recorded stuff when they have time. The industry calls that Video on Demand. They stream these shows from someone that let's them watch when they want to watch, and that keeps track of where they are when the stop. They don't tune in every day at 3:30 PM and watch reruns of their favorite show. If you are old enough, like me, you probably remember sitting down with all of your friends every week to watch the newest episode of Star Trek the Next Generation, or whatever. Remember how terrible that was. You had to make an appointment to watch television or you missed an episode and you couldn't watch it until it was in re-runs.
Well, those days are so dead no one even mourns them any more.
Disney knows this, and YouTubeTV knows this as well. Everyone involved in live television knows this. The only reason that people even have live television subscriptions is so that they can watch sports while the game is happening live. And in the United States that means that mostly boils down to watching football.
So every few years each of the live television companies (all of the cable companies, essentially) have to renegotiate with Disney. Every year the story is precisely the same. Viewership on everyone's live channels is down at least 25%. The market is shedding customers like crazy. Disney wants to raise prices at least 30%, and they also want the companies to carry (and pay for) a wide array of channels that absolutely no one watches. Meanwhile, the broadcasters just wants access to ESPN and ABC Sports. The reason that people pay money for YouTubeTV is that want to be able to watch the live sports content, and to a lesser extent the live news. Even that basically amounts to the sports news. They want to watch the College football games on Saturday, and the NFL games on Sunday. They want to be able to have a baseball game playing in the background, or catch their NBA team play. They want to hear the talking heads talk about sports, and they want to see the highlights. To accomplish this they are willing to pay approximately 4 times the cost of the fanciest Netflix subscription, maybe more if they have to rush out and sign up for another service because YouTubeTV no longer has access to ESPN and ABC Sports.
Before you think that YouTubeTV is probably gouging their customers you probably should know that YouTubeTV almost certainly pays basically every penny that their customers pay them directly to the content providers like Disney. All of the providers do this, but Disney is by far the worst. In Disney's defense they have the content that people actually want to see. Sling used the entirety of the proceeds from its subscribers to pay the various provider fees, and I actually suspect that YouTubeTV was subsidizing its customers. With the packages that they carry I suspect that they sold packages at a loss. So when Disney comes back and asks for more, with the overall pie shrinking every year. It is no wonder that YouTubeTV opted to turn out the lights.
One thing is certain, this definitely isn't about Jimmy Kimmel. That sort of content has already been moved irrevocably to normal YouTube. Absolutely no one is watching it on live television. Jimmy's return had just over 6 million viewers and was basically a miracle. Now it is back to around 1 million viewers and it probably gets more actual views from the spots on YouTube than on all of the cable providers combined. To give you a frame of reference, the worst NFL games are the Thursday Night Football games and even poor outings have 14 million viewers.