Disney dispute with YouTube TV costing $30 million per week
The standoff between Disney and YouTube TV is now costing Disney an estimated $30 million per week in lost carriage fees, according to a Morgan Stanley analysis cited by Fox Business. The blackout began on Oct. 30, when YouTube TV, owned by Google’s parent company, Alphabet Inc., stopped carrying Disney networks including ABC, ESPN, FX and National Geographic, after contract negotiation carriage fees broke down.
Sports and fan favorites go dark
That means football fans missed “Monday Night Football” – including the Philadelphia Eagles’ down-to-the-wire win over the Green Bay Packers – and viewers of “Dancing with the Stars” couldn’t watch the show’s 20th anniversary episode featuring former host Tom Bergeron.
Disney has lost millions in advertising and affiliate fees as a result, with the blackout now stretching into its third week.
What’s behind the dispute
At issue are the carriage fees that YouTube TV pays Disney to carry its channels.
According to Business Insider, Disney says Google is refusing to pay market rates for its programming, while Google argues that Disney’s terms would force it to raise monthly prices for subscribers.
The current base plan for YouTube TV costs $82.99 per month, though a promotional discount of $72.99 is being offered through the end of the year.
YouTube TV responds
On Sunday, YouTube TV issued a statement on X, telling customers: “We’ve been working to negotiate a deal with Disney that pays them fairly for their content and returns their programming to YouTube TV.”
The statement indicated that customers will receive a $20 credit, while adding, “We remain committed to working with Disney to bring their content back, and we appreciate your patience while we work toward a resolution.”
The company has not commented publicly beyond reiterating that it believes its rates are fair and reflective of the value its channels provide.
The bigger picture
YouTube TV is now among the largest multichannel video providers in the U.S., reflecting the continued rise of cord-cutting as viewers move away from traditional cable.
Analysts say Disney could see a partial offset in revenue if frustrated YouTube TV customers switch to its own streaming platforms, including Hulu, Fubo or the ESPN app.
For now, though, the stalemate shows no sign of ending, and each passing week costs Disney millions more in lost carriage revenue.
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Ella Rae Greene, Editor In Chief
