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Disney is Losing Tens of Millions a Week as YouTube Blackout Drags On [WATCH]

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Disney is facing substantial financial losses as its carriage dispute with YouTube TV extends into its thirteenth day, leaving millions of viewers without access to ABC, ESPN, and related networks.

A Wall Street analysis released [1] this week estimated that the impasse is costing Disney tens of millions of dollars each week.

YouTube TV, one of the largest streaming cable replacements in the U.S., dropped Disney-owned channels earlier this month after the companies failed to reach a distribution agreement.

The blackout, which began nearly two weeks ago, affects ABC, ESPN, and several other Disney-owned outlets.

Morgan Stanley evaluated the financial impact of the standoff in a research note published Sunday.

The firm estimated that a 14-day blackout would create a $60 million revenue headwind for Disney.

That equates to roughly $30 million per week, or about $4.3 million per day in lost revenue.

In addition, Morgan Stanley projected that each week of lost distribution would reduce Disney’s adjusted earnings per share by $0.02.

The research note emphasized the size of YouTube TV’s customer base, describing it as the third-largest multichannel video provider in the United States.

Despite the financial consequences, the firm projected that the dispute would likely be resolved later this week.

Morgan Stanley maintained its overweight rating for Disney stock and set a price target of $140. Disney shares traded near $116 on Wednesday.

In response to the blackout, YouTube TV announced compensation for subscribers who lost access to Disney-owned networks.

The company said Sunday in a post on X that it will issue a $20 credit to affected accounts.

“We’ve been working to negotiate a deal with Disney that pays them fairly for their content and returns their programming to YouTube TV. We know it’s been disappointing to lose Disney channels, and in light of the disruption, we’re offering our subscribers a $20 credit,” the company wrote.

YouTube TV said the credit will be distributed soon. “Over the next few days, family managers will receive an email with instructions on how to redeem their $20 YouTube TV credit. We remain committed to working with Disney to bring their content back, and we appreciate your patience while we work toward a solution,” the post concluded.

Disney has pushed back on YouTube TV’s characterization of the negotiations.

Disney Entertainment co-Chairs Dana Walden and Alan Bergman, along with ESPN Chairman Jimmy Pitaro, told employees in a memo Friday that “YouTube TV continues to insist on receiving preferential terms that are below market and has made few concessions.”

The companies held discussions last week about restoring ABC for Election Day coverage, but those efforts did not result in an agreement.

As a result, YouTube TV subscribers were unable to access ABC’s election programming.

The blackout has also affected sports fans, as ESPN and ABC regularly carry live sporting events.

With the dispute ongoing, viewers subscribed to YouTube TV have been unable to watch ESPN broadcasts or ABC’s sports coverage, which typically includes college football and other major events.

Negotiations between Disney and YouTube TV continue as both companies face mounting pressure from viewers affected by the prolonged disruption.