"YouTube TV isn't budging in its high-profile fight with Disney - and it has leverage beyond its Google backing. The popular pay-TV service has become an industry titan in its own right and is on track to catch its cable TV rivals in the coming years, analysts say. Disney's TV networks, like ESPN and ABC, have been gone from the Google-owned TV service for over a week."
"The Mouse House insists that YouTube isn't properly valuing its channels, while YouTube TV is telling its customers that giving in would lead to higher prices. Disney and ESPN have made the case that YouTube is being unreasonable and can afford to play hardball in negotiations since it's owned by Google. While Disney is a corporate behemoth, worth $200 billion, it's roughly 17 times smaller than Google-parent Alphabet, which is the fourth-largest company in the world with a $3.4 trillion market value."
"Ric Prentiss of Raymond James wrote in a note that this fight is "indicative of YouTube TV wielding increased bargaining power." YouTube TV has been the fastest-growing major TV provider over the last few years, rising from 2 million subscribers in late 2019 to about 10 million paying customers, while most of its competitors have shrunk. Google's live TV service is now the third-biggest pay-TV provider behind only cable giants Charter and Comcast, according to analysts at MoffettNathanson."
YouTube TV is refusing to concede in a high-stakes carriage dispute with Disney, resulting in the removal of Disney networks including ESPN and ABC from the service for over a week. Disney accuses YouTube of undervaluing its channels; YouTube warns that conceding would raise subscriber prices. Alphabet's vast size creates perception of added leverage, but YouTube TV itself has expanded rapidly from about 2 million to roughly 10 million subscribers since 2019 and now ranks as the third-largest pay-TV provider. Analysts project YouTube TV will overtake traditional cable incumbents to become the industry leader within two years.
Read at Business Insider
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