Disney’s fight with YouTube TV is tied for its longest blackout ever — and faces a big test on Thursday
Disney and YouTube TV are currently embroiled in a contentious carriage dispute that has reached its 13th day, marking one of the longest standoffs in the history of media negotiations. This blackout affects YouTube TV subscribers who are missing out on popular channels such as ESPN and ABC, and it highlights the ongoing tensions between major media companies and streaming services. Disney accuses Google-owned YouTube of leveraging its market power unfairly, while YouTube argues that Disney’s pricing demands are too steep, potentially leading to further price hikes for subscribers. The stakes are high for both companies, as Disney controls several competitive platforms like Hulu + Live TV, while YouTube TV benefits from the financial backing of Alphabet, valued at $3.5 trillion.
Analysts believe that the dispute may soon come to a resolution, especially with Disney’s earnings report scheduled for Thursday. Rich Greenfield from Lightshed Partners expressed skepticism that Disney would enter the earnings call without having reached an agreement, as the television segment is crucial for ESPN’s revenue and profits. Historical context shows that most carriage disputes are resolved quickly, often triggered by key events such as major sports games. However, this particular standoff has surpassed significant moments, including two weekends of college football and two “Monday Night Football” games, which usually catalyze negotiations. Joe Bonner from Argus Research noted the unusual nature of this dispute, suggesting that the absence of resolution could lead to increased subscriber dissatisfaction and pressure on both parties to reach a deal.
As the situation unfolds, all eyes are on Disney CEO Bob Iger, who recently attended a “Monday Night Football” game but did not provide updates on the negotiations. The upcoming earnings call could prove to be a pivotal moment, as analysts are keen to see how Disney navigates this challenging landscape. The outcome of the dispute will not only impact subscribers but could also set a precedent for future negotiations between media companies and streaming platforms. With both sides holding strong, the resolution of this ongoing conflict will be closely watched by industry experts and consumers alike.
Disney CEO Bob Iger attended the “Monday Night Football” game in Green Bay, Wisconsin, but didn’t speak about his company’s dispute with Google’s YouTube TV.
Todd Rosenberg/Getty Images; Sean Gallup/Getty Images
Disney’s fight with YouTube TV is on day 13, matching its longest carriage dispute in history.
Standoffs between media companies and TV providers typically don’t last long.
One analyst said Disney’s earnings report on Thursday could help catalyze a deal.
YouTube TV subscribers are dealing with one of the
longest blackouts in recent history
, but there’s reason to believe the
Disney-Google beef
could end soon.
Disney and YouTube haven’t budged in a standoff over how much TV networks like ESPN and ABC are worth. Both sides are
playing the blame game
, with Disney accusing Google-owned YouTube of
abusing its market power
, and YouTube saying the Mouse House is pushing rates that will force it to
hike prices again
.
This blackout is now on its 13th day, which ties the
Disney-DirecTV stalemate in 2024
for Disney’s longest dispute. Disney had previously taken its channels off Charter’s Spectrum for 11 days in 2023 and Dish Network for a few days in 2022.
The longest major carriage dispute in modern history was a nearly three-year showdown between HBO and Dish, which lasted from November 2018 until July 2021. Otherwise, Nexstar’s affiliate stations were off DirecTV for over two months in 2023.
Both Disney and YouTube TV have reasons for confidence in the hands they’re holding, and gripes about unfair advantages the other has. Disney controls several top alternatives to YouTube TV, like Fubo and Hulu + Live TV, while YouTube TV is backed by $3.5 trillion Alphabet.
Some media analysts suspect the fight won’t last much longer,
given its steep cost
. Rich Greenfield of Lightshed Partners said he thought there would be a deal before Disney’s earnings report on Thursday.
“I can’t imagine Disney going into earnings on Thursday without a deal,” Greenfield
told Puck’s John Ourand
on Monday. Greenfield added that the TV business “is such a big part of ESPN’s revenues and profits,” so he “can’t fathom getting on the earnings call and being dark still.”
Joe Bonner from Argus Research told Business Insider on Monday that he was “a little surprised” that
there hadn’t been a deal
. The Disney-YouTube TV deadlock has blown past key events that typically end these carriage disputes, like two weekends of college football and a pair of “Monday Night Football” games.
“The prospect of missing an NFL game typically creates enough subscriber discontent to bring parties to the table, though that doesn’t seem to be happening in this case,” Bonner said.
Disney CEO Bob Iger had a chance to give an update on negotiations with YouTube TV in an appearance on Peyton and Eli Manning’s altcast of ESPN’s “Monday Night Football.”
But neither former NFL star put Iger on the hot seat. If there’s no deal with YouTube before Disney’s earnings call on Thursday at 8:30 ET, analysts certainly won’t give the same courtesy.
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Eric
Eric is a seasoned journalist covering Business news.
