Disney CEO Bob Iger didn’t mince words during a recent earnings call, emphasizing that the company is putting in an immense effort to finalize a deal with YouTube TV. His message was clear: they want to minimize disruptions for subscribers.
“We’re hoping to sort this out soon so consumers can enjoy our content on this platform,” Iger stated. He also reaffirmed that their proposal is competitive, as it aligns with or surpasses what other major distributors have accepted. According to Iger, it’s crucial that Disney reaches an agreement that accurately reflects the value of its content, a sentiment supported by both YouTube and its parent company, Alphabet.
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Analysts from Morgan Stanley recently pointed out that this ongoing dispute is hitting Disney hard financially, estimating losses of around $30 million each week. If the blackout continues, Disney could face a $60 million revenue drop over just two weeks.
Since failing to finalize a contract before the October 30 deadline, Disney’s programming, including ESPN, ABC, and FX channels, has been unavailable on YouTube TV. The crux of the disagreement centers around the fees Disney wants to charge for its channels.
YouTube, on the other hand, has argued it is pushing for fair pricing and is not willing to accept conditions that may be unfavorable to its users. They claim that Disney’s decision to take its content off the platform is harming subscribers while benefiting its own services, such as Hulu + Live TV and Fubo.
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A spokesperson for Disney has placed the responsibility on YouTube TV, stating that the platform is refusing to pay fair rates for channels like ESPN and ABC. Disney highlighted that its networks are essential, particularly for live sports viewing, especially with major games including NFL, NBA, and college football featuring this weekend.
“Google, with its $3 trillion valuation, is leveraging its market position to drive down industry rates in a way that we’ve successfully negotiated with other distributors,” the spokesperson commented, acknowledging the frustrations of YouTube TV subscribers and affirming that Disney is committed to finding a resolution swiftly.
It’s worth noting that Spanish network Univision is experiencing similar negotiations with YouTube.
On a related note, Disney’s shares dropped nearly 8% on the Thursday announcement.
Originally published as:Bob Iger from Disney Speaks Out on YouTube TV Negotiations
