Disney is facing significant financial losses due to an ongoing outage of its networks, including ESPN and ABC, on YouTube TV. Analysts from Morgan Stanley estimate the company is losing approximately $30 million weekly, totaling a projected $60 million in revenue loss if the situation persists for another two weeks. This blackout began on October 30, stemming from a contract dispute where Disney seeks higher fees, while Google claims to be unwilling to meet those demands.
As of November 11, the blackout had lasted 12 days, causing subscribers to miss two weeks of key sporting events, including “Monday Night Football” and college football broadcasts. Around 24% of YouTube TV subscribers indicated they may cancel their service due to the outage. In response, YouTube started offering a one-time $20 credit to users affected by the dispute.
Disney is set to report its fourth-quarter earnings on November 13, with analysts projecting revenues of $22.78 billion. They also noted that the blackout could reduce Disney’s earnings per share by 2 cents. Meanwhile, the launch of ESPN Unlimited, a standalone streaming service, appears to have performed better than expected, potentially adding significant subscription revenue in the coming years.
YouTube TV remains a major player in the virtual pay-TV market, boasting over 10 million subscribers, while Disney’s Hulu + Live TV and Fubo collectively have nearly 6 million.
Source link
