Disney, YouTube TV both losing big on channel blackout
Disney, YouTube TV both losing big on channel blackout
Customers likely won’t be too mad about the news that both companies are suffering major losses thanks to the extended carriage dispute.
Disney-owned channels are still unavailable on YouTube TV, almost two weeks after the channels first went dark on the service. ABC, Disney Channel, ESPN, FX, and other networks have been pulled from YouTube TV, and as of the time of this writing, there is no indication that the two sides are close to a new agreement. Subscribers are the true sufferers in these channel blackouts, and they may be interested to know that the dispute is at least costing Disney and YouTube significant amounts of money.
Key Details:
- Mickey won’t be happy: Disney is losing more than $4 million per day during the blackout.
- Not one-sided: YouTube TV may never regain the subscribers it loses during the channel blackout.
- Biggest losers: Audiences are still the ones who lose most from the carriage dispute between the two giants.
Analysts from Morgan Stanley have estimated that Disney is losing almost $4.3 million per day by not collecting carriage fees from YouTube TV. That number adds up quickly and means that the House of Mouse has lost an estimated $60 million since the blackout started.
From a financial standpoint, YouTube TV doesn’t have to worry about losses quite so immediately. After all, its parent company, Alphabet Inc., is valued at over $3 trillion, and the loss of a few million dollars per day is a pretty small one against revenue on that scale.
Nevertheless, YouTube TV stands to lose subscribers it may never get back during the standoff with Disney. A survey from Drive Research fielded last week found that 24% of YouTube TV customers have already canceled or intend to cancel their subscription thanks to the blackout. YouTube TV has more than 10 million subscribers, and while I don’t think it’s going to lose 2.4 million of them because of this dispute, there is a clear risk of a significant cancel reaction for the streamer.
The real losers in this carriage fight are customers, who continue to pay for YouTube TV subscriptions without getting all of the programming they were supposed to have access to. YouTube TV has begun offering viewers a $20 credit to make up for the blackout of Disney channels, but viewers would almost certainly rather get access to those channels as they’re supposed to have.
If you’re ready to move on from YouTube TV, click here to find your best options for watching programming from Disney-owned channels. The standoff between YouTube TV and Disney has no end in sight as of now, and both sides stand to incur significant losses if it goes on much longer.
YouTube TV
YouTube TV is a live TV streaming service with more than 60 channels for $82.99/month. This plan includes local channels 32 of the top 35 cable channels, and regional sports networks (RSNs) in select markets. The base plan includes more than 100 live channels, including major broadcast networks like ABC, CBS, FOX, and NBC, as well as popular cable channels such as ESPN, CNN, FX, USA Network, and TNT. Local channels are included in most markets, making YouTube TV a full replacement for traditional cable for many viewers.