The broadcast dispute between Disney and YouTube TV is reportedly costing the Mouse House $30 million per week, according to Morgan Stanley.
Sports fans, in particular, have been hard hit by the blackout as some 10 million YouTube TV subscribers lost access to ESPN, ABC, and other Disney-affiliated channels after contract negotiations broke down at the end of October.
The Disney blackout began on October 30, cutting off broadcasts of SportsCenter with Scott Van Pelt and 9-1-1: Nashville and Grey’s Anatomy. It has been called one of the largest television blackouts in recent years, effecting over 10 million customers.
Morgan Staneley has estimated that Disney will lose up to $60 million revenue shortfall from its YouTube channel.
Morgan Stanley analyst Ben Swinburne lowered his Disney quarterly net income estimate by $25 million, from $1.55 billion to $1.52 billion.
YouTube is also feeling some financial pinch over the disagreement. Google has offered customers a $20 credit for those who apply for the offer. The streamer is also losing out on all the ad revenue Disney’s channels might have earned. Not to mention the revenue from those who have cancelled their YouTube subscription thanks to the blackout.
Disney is accusing YouTube of refusing to pay what it thinks is going rates. Meanwhile, YouTube owner Google claims it will have to raise its rates if it agrees to Disney’s higher prices.
“Unfortunately, Google’s YouTube TV has chosen to deny their subscribers the content they value most by refusing to pay fair rates for our channels, including ESPN and ABC,” Disney said in a statement last month. “Without a new agreement in place, their subscribers will not have access to our programming, which includes the best lineup in live sports – anchored by the NFL, NBA, and college football, with 13 of the top 25 college teams playing this weekend. With a $3 trillion market cap, Google is using its market dominance to eliminate competition and undercut the industry-standard terms we’ve successfully negotiated with every other distributor.”
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