Key Highlights
- Walt Disney Co. is losing around $30 million a week due to its networks being blacked out on YouTube TV.
- The dispute between Disney and Google-owned YouTube TV began on October 30 after contract talks collapsed.
- Morgan Stanley analyst Ben Swinburne projects the blackout could cost Disney up to $60 million if it lasts two weeks.
- The disagreement threatens ESPN’s carriage fees and advertising revenue during a busy sports calendar period.
Disruption in the Sports Rights Market
Walt Disney Company is facing significant financial losses due to a blackout with YouTube TV, a service owned by Google. According to an analysis from Morgan Stanley, Disney is losing approximately $30 million every week as a result of this dispute, which began on October 30 after contract negotiations broke down.
Financial Implications
Morgan Stanley’s analyst, Ben Swinburne, warned that the ongoing standoff could cost Disney up to $60 million if it lasts two weeks. This estimate is based on daily losses of about $4.3 million per day, as reported by Business Insider. Swinburne has also cut his forecast for Disney’s quarterly net income by $25 million, projecting it to be around $1.52 billion.
The financial implications are significant given that ESPN and other Disney-owned channels are unavailable on YouTube TV during one of the busiest sports periods in the calendar. This includes critical games such as “Monday Night Football,” NBA matches, and college football events.
Strategic Responses
Disney is considering drawing subscribers away from YouTube TV to its own live-TV services like Hulu + Live TV, Fubo, and the ESPN app. However, analysts agree that these strategies may not fully offset the financial losses caused by the blackout.
The dispute has also highlighted Disney’s dependence on carriage fees and advertising revenue from sports rights during a time of accelerated cord-cutting among consumers. Analysts note that the rapid growth of YouTube TV and its sports-heavy lineup make this blackout particularly visible to audiences and investors alike.
Future Outlook
The standoff is expected to continue until Disney and YouTube TV reach an agreement, with executives from both sides trading accusations over terms and conditions. The outcome will be closely watched in the coming weeks as Disney reports its quarterly earnings on Thursday, potentially facing questions about the impact of this dispute.
For now, the blackout remains a significant challenge for both companies, with millions of viewers missing out on key sports events. The resolution could have far-reaching implications not only for these two players but also for the broader landscape of streaming services and sports broadcasting rights.
Note: Disney’s shares were up 0.77% as of Tuesday morning, rising about $0.86 to $113.10 a share at 10:30 a.m. ET on November 11, 2025.
