More than two weeks after YouTube TV customers lost access to Disney's streaming channels -- including ABC, ESPN and the ACC and SEC networks -- there is no sign of progress in the negotiations between the two entertainment giants.
At Disney's fourth quarter earnings call on Thursday, Walt Disney CFO Hugh Johnston didn't offer specifics on the ongoing negotiations, instead noting that "in terms of our (financial) guidance, we built a hedge into that (the YouTube TV outage), with the expectation that these discussions could go for a little while."
Disney CEO Bob Iger ended the call on a more positive note, saying, "While we've been working tirelessly to close this deal and restore our channels to the platform, it's also imperative that we make sure that we agree to a deal that reflects the value that we deliver."
The disagreement causing the ABC and ESPN outage stems from the "carriage fee" that YouTube TV pays Disney to broadcast its channels. Disney has faced similar negotiating standoffs with other broadcasters in recent years, including an earlier 2021 outage on YouTube TV that was resolved in two days.
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Disney says YouTube TV isn't paying enough to stream its channels. YouTube TV, owned by Google, has the most subscribers among all internet TV providers, with over 9 million. Hulu, owned by Disney, is second with 4.3 million subscribers through its Hulu + Live TV offering.
"The deal that we have proposed is equal to or better than what other large distributors have already agreed to," Iger also said Thursday.
While the two sides wrangle over the fees, they risk further losses. Nearly a quarter of YouTube TV subscribers (24%) have canceled or intend to cancel their subscription because the service "no longer delivers the core content they signed up for," according to a survey cited by Variety.
Disney, meanwhile, is losing an estimated $30 million in revenue per week while its channels are unavailable on YouTube TV, according to a Morgan Stanley research note cited by Variety. That's a significant chunk of change because each week Disney's networks are dark on YouTube TV, Disney's adjusted earnings per share drop by 2 cents, analysts say.
When will ESPN, ABC and other Disney channels return to YouTube TV?
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