Disney is losing millions of dollars each week due to a disagreement over YouTube TV.

Disney’s Revenue Impact from YouTube TV Dispute

Disney is facing significant financial losses, estimated to be in the tens of millions weekly, due to an ongoing dispute with YouTube TV. The situation has put a strain on the media giant’s revenue streams.

As of Wednesday, YouTube TV subscribers have been without access to ABC and ESPN for 13 days, all amid negotiations with Disney, the parent company. Morgan Stanley’s recent analysis suggests that this outage, which has persisted for 14 days, could lead to a $60 million revenue loss for Disney. The breakdown shows an approximate loss of $30 million each week, which translates to about $4.3 million per day.

Morgan Stanley emphasized that YouTube TV is the third-largest multichannel provider in the U.S., and while they anticipate the dispute may resolve soon, they also noted that each lost distribution deal could reduce adjusted earnings per share by $0.02.

Disney Channel Goes Dark

Following unsuccessful contract negotiations, the Disney Channel is no longer available on YouTube TV. Morgan Stanley maintains an overweight rating on Disney, with a target stock price of $140. As of Wednesday, Disney shares were trading around $116.

In response to the channels’ absence, YouTube TV is providing subscribers with a $20 credit as compensation for losing the Disney Channel.

YouTube TV’s Response

YouTube TV, part of Google’s Alphabet, communicated on a social platform that they are actively working on a deal to ensure fair compensation for Disney’s content and to restore its programming. Subscribers will receive instructions soon on how to redeem their credits. The message also expressed that YouTube TV appreciates customer patience while they work towards resolving the issue.

Continued Disruptions

In addition to the loss of Disney Channel, YouTube TV subscribers are currently unable to access ESPN broadcasts on ABC, further impacting viewer options.

Interestingly, discussions to restore ABC coverage took place, particularly with the upcoming election day in mind, yet no agreement was reached.

Overall, while both companies seem to be navigating this complex situation, it’s clear that the dispute is having tangible effects on Disney’s bottom line and viewer access to popular programming.