Disney finds itself embroiled in a costly standoff with Google’s YouTube TV, resulting in an estimated daily revenue loss of $4.3 million, according to Morgan Stanley. The financial toll, amounting to roughly $30 million each week, comes as a result of a blackout that has now persisted for nearly two weeks, affecting popular channels like ABC and ESPN.
As the blackout continues into its 12th day, analysts predict that a resolution between Disney and Google might be on the horizon by the week’s end, as reported by Variety. The dispute not only impacts Disney but also takes a toll on Google. Survey data by Drive Research, involving 1,100 U.S. consumers, highlights that 24% have either canceled or are considering canceling their subscriptions due to the ongoing channel unavailability.
More than 20 Disney-owned channels went dark on YouTube TV after their contract expired at 11:59 PM ET on October 30th. While Google accuses Disney of pulling its channels from YouTube TV as a “negotiating tactic,” and says its terms would rise prices for YouTube TV customers, Disney says Google is “refusing to pay fair rates” for its content. Google has been giving $20 credits to its subscribers during the blackout, but it remains to be seen which will end first: the Disney-Google blackout or the government shutdown.
