Disney Faces $4.3 Million Daily Loss from YouTube TV Blackout

Disney is facing significant financial losses due to its ongoing blackout on YouTube TV, with estimates placing the daily loss at approximately four point three million dollars. According to a report from Morgan Stanley, this blackout is costing Disney around thirty million dollars weekly, which translates to nearly four point three million dollars each day.

The analysis comes from Morgan Stanley equity analysts Benjamin Swinburne and Thomas Yeh, who indicated that the blackout, now entering its twelfth day as of November eleventh, is related to a dispute over carriage fees between Disney and YouTube TV.

They project that this situation will create a revenue headwind of sixty million dollars for Disney's year-end twenty twenty-five quarter, factoring in a fourteen-day impact from the blackout. The analysts also noted that the prolonged absence of Disney's networks, including ESPN and ABC, from YouTube TV could reduce Disney's adjusted earnings per share by two cents for each week the channels remain offline.

Furthermore, the financial pressure is not just on Disney; YouTube is also feeling the impact as some users have already canceled their subscriptions or plan to do so because of the blackout. This situation underscores the critical nature of media distribution agreements in today's shifting media landscape.

The ongoing dispute highlights broader trends affecting both traditional networks and streaming platforms, revealing the financial stakes involved in carriage negotiations. It remains to be seen how quickly the two companies can reach an agreement and restore Disney's channels to YouTube TV subscribers, as the analysts expect a resolution later this week.

However, the immediate financial implications for Disney are substantial, posing challenges for the company's revenue streams and overall financial health during this critical period.