Disney is allegedly facing millions in revenue losses every single day, due to the blackout of its channels on YouTube TV. Both companies are finding it hard to renew the agreement. The fight between Disney and YouTube TV is now entering its third straight week, leaving millions of subscribers without access to ESPN, ABC, and other Disney-owned channels.
Disney – YouTube TV fight continues despite CEO stepping in
Several rounds of talks have already taken place between the two companies. There has been direct involvement from Disney CEO Bob Iger and Google CEO Sundar Pichai, and despite that, no resolution appears imminent. According to The Athletic, discussions have gained momentum. However, a deal still seems distant enough to disrupt another weekend of major broadcasts, including college football and Monday Night Football.
Sources have reported that Google wants Disney to accept the same rates as other distributors, rather than the lower rates critics have suggested. The proposal includes a clause that triggers adjusted pricing once YouTube becomes the biggest distributor in the US. This is very likely as the streaming platform continues to gain subscribers.
Disney is already facing financial strains and uncertain timelines
In the recent quarterly earnings calls, the CEO of Disney told investors that the company’s proposal is “commensurate with deals already struck with distributors larger than Google.” Meanwhile, CFO Hugh Johnston stated bluntly that Disney is “ready to go as long as YouTube TV wants to.”
Between the fight of the two companies, the subscribers are the biggest losers. However, to soften the blow, YouTube is offering a one-time $20 credit to its consumers. But this doesn’t seem to be appealing to the users, and the frustration continues to grow. Analysts have also warned Disney that it would lose as much as $30 million weekly if the blackout continues.
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