YouTube, Disney and Fight Threatens
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More than two weeks after having its channels go dark on the streaming TV service, Disney has resolved its big, expensive carriage fight with Google’s YouTube TV. Driven by the only pressure that actually seems to get anything done in American life—the fear that a percentage of the population might be asked to go without college and Monday Night Football for a desperate handful of days—the two giants have come to an agreement on how much YouTube will pay to offer Disney’s various channels to its ever-growing number of subscribers.
Disney shares plunged 8% in early trading Thursday after the company reported disappointing revenue and warned of a prolonged distribution fight with YouTube TV. Why it matters: Disney+ and Hulu's continued growth was overshadowed by a streaming-era carriage disagreement and declines in the legacy TV business.
Disney's carriage squabble with YouTube TV has spurred viewership and ratings issues for some of its top properties, including "World News Tonight"
The YouTube TV Disney fight now centers on ABC pricing, not ESPN, creating widespread blackouts and a sizeable weekly revenue hit.
On the one hand, $20—which Google previously promised users if a previously unnamed amount of time, now revealed to be “about a week and change” had passed—isn’t that much, given that a monthly YouTube TV subscription currently runs users $82.
The Disney-YouTube TV dispute exposes major shifts in the media business—from local outlets losing power to tech giants reshaping how we watch TV.