"Disney is losing $30 million in revenue a week from its standoff with YouTube TV over rates, according to Morgan Stanley. Sports fans may feel like the big losers from a carriage dispute that's kept Disney's TV networks, including ESPN and ABC, off YouTube TV since October 30. Until a deal is reached, YouTube TV subscribers will miss shows and games, including a high-profile "Monday Night Football" matchup."
"The Mouse House and Google are also feeling the pain. Disney is likely to face a $60 million revenue shortfall from its YouTube TV blackout, Morgan Stanley analyst Ben Swinburne wrote in a Sunday note. That's based on the assumption that the standoff, which has gone on for 11 days so far, will last for 14 days. In other words, Disney is losing $30 million a week, or about $4.3 million each day, because its channels aren't on YouTube TV, Swinburne estimates."
"Disney has some ways to cushion the blow. It controls several YouTube TV alternatives like Hulu + Live TV, Fubo, and the stand-alone ESPN app. So, if customers cancel YouTube TV and sign up for one of Disney's rival services, it will get a new source of revenue and could benefit by owning the subscriber relationship. Swinburne lowered his Disney quarterly net income estimate by $25 million, from $1.55 billion to $1.52 billion."
Disney's TV networks, including ESPN and ABC, have been off YouTube TV since October 30 due to a carriage dispute. YouTube TV subscribers are missing shows and games, including a high-profile Monday Night Football matchup. Morgan Stanley estimates a $60 million revenue shortfall if the blackout lasts 14 days, equivalent to about $30 million per week or $4.3 million per day. Disney controls rival services such as Hulu + Live TV, Fubo, and the standalone ESPN app, which could capture canceled subscribers. Morgan Stanley lowered Disney's quarterly net income estimate by $25 million to $1.52 billion. Google is offering $20 bill credits to affected YouTube TV subscribers who have not canceled.
Read at Business Insider
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