Disney is facing a significant financial impact due to its ongoing content distribution dispute with Google’s YouTube TV. According to estimates by Morgan Stanley, the blackout is costing Disney $4.3 million in daily revenue.
The conflict, which has now extended into its 12th day, has resulted in the unavailability of Disney-owned channels like ABC and ESPN on YouTube TV. This has led to a weekly revenue impact of $30 million, as reported by Variety.
The dispute was triggered by the expiration of the content distribution contract between the two companies. Google has accused Disney of using the blackout as a negotiation tactic, alleging that Disney’s terms would lead to increased costs for YouTube TV users. Disney, on the other hand, contends that Google is unwilling to pay fair rates for its content.
In response to the blackout, Google has attempted to appease subscribers by providing $20 credits. However, the resolution of the Disney-Google disagreement remains uncertain, raising questions about the duration of the blackout compared to a potential government shutdown.
Source: The Verge