Disneyās Blackout With YouTube TV Sparks Punishing $30M In Weekly Losses For Mouse House: Analysts
Walt Disney Co. is hemorrhaging roughly $30 million in revenue every week that
its networks remain off YouTube TV, according to a new analysis from Morgan Stanley ā adding fresh urgency to a standoff that has already stretched into its second week.
The blackout, which began Oct. 30 after contract talks collapsed, has left ESPN, ABC and other Disney-owned channels unavailable to
YouTube TVās estimated 10 million subscribers.
The impasse comes during one of the
busiest stretches of the sports calendar, with āMonday Night Football,ā NBA and college football games all affected.
In a Sunday note to clients,
Morgan Stanley analyst Ben Swinburne projected that Disneyās ongoing dispute with Google-owned YouTube TV would shave $60 million off the companyās revenue if the outage lasts two weeks ā or about $4.3 million a day,
according to Business Insider.
Swinburne cut his estimate for Disneyās quarterly net income by $25 million, to $1.52 billion, noting the blackout could dent earnings by about 2 cents a share.
The bankās estimate shows how much Disney depends on ESPNās carriage fees and advertising revenue, particularly as cord-cutting accelerates and sports rights costs rise.
The networksā absence from YouTube TV threatens both viewership and affiliate payments tied to live sports broadcasts.
The blackout has left ESPN, ABC and other Disney-owned channels unavailable to YouTube TVās estimated 10 million subscribers.
nypost.com