Disney is currently involved in a contract dispute with Google’s YouTube TV that is estimated to be causing the company a loss of $4.3 million daily in revenue, according to Morgan Stanley. This situation has persisted for 12 days and is affecting channels such as ABC and ESPN, resulting in a total loss of approximately $30 million weekly. Analysts anticipate that a resolution between Disney and Google may be reached soon.
The blackout of over 20 Disney-owned channels occurred after their contract expired on October 30, at 11:59 PM ET. The conflict has implications for both companies, with a survey indicating that 24% of YouTube TV subscribers have canceled or are planning to cancel their subscriptions due to the absence of Disney channels.
Amid the standoff, Google has characterized Disney’s action as a “negotiating tactic,” claiming that Disney’s pricing demands would lead to increased costs for YouTube TV customers. In contrast, Disney contends that Google is not offering fair compensation for its content. During the blackout, Google has been providing $20 credits to affected subscribers as a form of compensation.
The resolution of this conflict is uncertain, prompting questions about the future implications for both companies and their subscribers.
Source: https://www.theverge.com/news/818542/disney-youtube-tv-blackout-cost