Disney’s Revenue Takes a Major Blow
Disney is reportedly losing $30 million in revenue every week amid its ongoing standoff with YouTube TV over carriage rates, according to a recent analysis by Morgan Stanley. The dispute, which began on October 30, has kept Disney’s popular TV networks — including ESPN, ABC, and other channels — off YouTube TV’s lineup, leaving millions of sports and entertainment fans without access.
Analyst Ben Swinburne from Morgan Stanley estimates that the blackout could result in a $60 million revenue shortfall if it continues for two weeks. That translates to roughly $4.3 million in lost revenue per day for Disney, a significant hit even for one of the entertainment industry’s biggest players.
Sports Fans Caught in the Crossfire
The blackout comes at an especially bad time for sports enthusiasts. YouTube TV subscribers have already missed high-profile events, including “Monday Night Football” matchups and other live sporting broadcasts. For many households, ESPN’s absence from YouTube TV is a dealbreaker, leading to cancellations and frustration across social media.
While fans remain caught in the middle, both Disney and Google — YouTube TV’s parent company — are feeling the financial strain of the standoff.
Disney’s Cushion Against the Loss
Despite the setback, Disney has ways to soften the blow. The company controls several rival streaming platforms, including Hulu + Live TV, Fubo, and the stand-alone ESPN app. If YouTube TV customers switch to one of these alternatives, Disney could regain lost viewers and potentially benefit from stronger direct-to-consumer relationships.
Still, Swinburne adjusted his Disney quarterly net income forecast, reducing it by $25 million — from $1.55 billion to $1.52 billion. This amounts to a 1.6% decline, or about 2 cents per share, showing the blackout’s real financial impact on the media giant’s bottom line. Disney is expected to share its quarterly results on Thursday, which may shed more light on the situation’s toll.
YouTube TV Offers Rebates, Faces Backlash
The blackout isn’t painless for Google either. To address customer frustration, YouTube TV is offering a $20 credit to subscribers impacted by the dispute. However, the rebate is not applied automatically — users must manually claim it, and it’s only available to those who haven’t paused or canceled their subscriptions.
If all 10 million YouTube TV subscribers claimed the rebate, Google could face a $200 million cost. However, not everyone is expected to redeem it, and YouTube TV is saving money by not paying Disney’s carriage fees during the blackout.
Still, YouTube TV risks losing customers who may cancel outright, seeking uninterrupted access to sports and entertainment elsewhere.
The Battle Over Streaming Costs
At the heart of the dispute lies a familiar industry conflict: rising carriage fees. Disney insists that Google is refusing to pay the “going rate” for its networks, while Google argues that agreeing to higher prices would force yet another YouTube TV price hike for subscribers.
Until both sides reach an agreement, millions of viewers remain without some of their favorite shows and live sports — and both Disney and Google continue to feel the financial and reputational consequences.
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