Disney Loses $4 Million Daily in YouTube TV Blackout
▼ Summary
– Disney is losing an estimated $4.3 million daily in revenue due to its contract dispute with Google’s YouTube TV, totaling $30 million weekly as the blackout continues.
– The blackout has affected over 20 Disney-owned channels, including ABC and ESPN, since their contract expired on October 30th.
– Google is providing $20 credits to YouTube TV subscribers during the blackout, while accusing Disney of using channel removal as a “negotiating tactic” that could raise customer prices.
– Disney claims Google is “refusing to pay fair rates” for its content, with both companies expected to reach a resolution by the end of the week according to analysts.
– A consumer survey found that 24% of YouTube TV subscribers canceled or planned to cancel their subscriptions due to the dispute, indicating significant customer impact for Google.
The ongoing dispute between Disney and Google’s YouTube TV is proving to be a costly affair, with Morgan Stanley estimating that Disney is losing a staggering $4.3 million each day in revenue. This financial hemorrhage amounts to roughly $30 million weekly as the blackout of popular channels like ABC and ESPN continues into its twelfth day. Industry analysts, however, anticipate that the two corporate giants will likely reach a new content distribution agreement before the week concludes.
This high-stakes standoff is not one-sided. Google is also feeling the impact, as a recent survey of 1,100 U.S. consumers conducted by Drive Research revealed that nearly a quarter of respondents have either canceled or intend to cancel their YouTube TV subscriptions. The service went dark for more than 20 Disney-owned channels after the previous contract lapsed late on October 30th.
The public blame game continues unabated. Google has publicly accused Disney of using the channel removal as a strategic “negotiating tactic,” arguing that Disney’s proposed terms would inevitably force a price increase for YouTube TV customers. In response, Disney contends that Google is simply “refusing to pay fair rates” for its valuable content. To mitigate subscriber frustration, Google has been issuing $20 credits to its user base for the duration of the blackout. As the situation drags on, many are left wondering which will be resolved first: the media blackout or the concurrent government shutdown.
(Source: The Verge)
