"Disney on Monday revealed the impact of its prolonged carriage dispute with YouTube TV. Disney said the 15-day blackout caused an approximately $110 million operating income hit to its sports segment in its most recent fiscal quarter. Overall operating income for its sports division came in at $191 million, down 23% from the year-ago quarter, the company said. The company said this reflected the YouTube TV fallout, higher programming and production costs, and a decrease in subscription and affiliate fees."
"The showdown centered on a dispute over how much the Google-owned TV service was prepared to pay to carry ABC, ESPN, and Disney's other TV networks. Disney claimed YouTubeTV wasn't assigning a fair value to its content, including its highly valuable sports rights, such as "Monday Night Football" and college football. YouTube argued that paying higher rates would force it to raise prices for its own customers. (Google gave YouTube TV subscribers a $20 bill credit as the fight dragged on.) The high-profile skirmish was the longest blackout in Disney's history. Analysts at Morgan Stanley had estimated that Disney was losing $30 million in lost revenue a week, or about $4.3 million each day, from the YouTubeTV standoff."
A 15-day blackout on YouTube TV removed ESPN, ABC, and other Disney channels and reduced sports operating income by about $110 million. Sports operating income totaled $191 million, down 23% year over year, reflecting the blackout, rising programming and production costs, and lower subscription and affiliate fees. The dispute centered on how much YouTube TV would pay to carry Disney networks, with Disney asserting undervaluation of valuable sports rights and YouTube saying higher fees would force subscriber price increases. Morgan Stanley estimated roughly $30 million in lost revenue per week during the standoff.
Read at Business Insider
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