Disney losing over $4M a day amid YouTube TV channel blackout
What's the story
Disney is losing an estimated $4.3 million every day due to its ongoing dispute with YouTube TV over a new content distribution contract, Morgan Stanley has estimated. The blackout of channels such as ABC and ESPN has now entered its 12th day, costing Disney about $30 million per week in lost revenue. The dispute centers on licensing fees and terms, with Disney seeking "fair revenue for its content" while YouTube TV resists terms it says would raise costs for subscribers.
Contract dispute
The blackout began on October 30
The blackout began when Disney's contract with YouTube TV expired at 11:59pm ET on October 30. Over 20 Disney-owned channels went dark on the platform. The blackout has affected YouTube TV's 10 million subscribers, with a survey by Drive Research showing that 24% have canceled or plan to cancel their subscriptions. To mitigate subscriber dissatisfaction, YouTube TV is offering a $20 credit during the blackout period.
Previous incidents
Disney's previous blackouts and potential subscriber shift
Disney has previously faced similar blackouts, including an 11-day dispute with Charter in 2023 and a 13-day battle with DirecTV in 2024. However, the current fight with YouTube TV is particularly high-profile due to the platform's rapid subscriber growth and sports-heavy lineup. Morgan Stanley analyst Ben Swinburne suggested that Disney could mitigate losses by attracting departing YouTube TV subscribers to its own live TV services such as Hulu + Live TV, Fubo, and ESPN app.