Disney is bleeding $4.3 million every day as its contract standoff with Google's YouTube TV stretches into its second week. The blackout of major channels including ABC and ESPN is hammering both companies, with nearly a quarter of YouTube TV subscribers already canceling or planning to jump ship according to new consumer research.
The numbers tell a brutal story. Disney is watching $4.3 million vanish daily as its high-stakes contract negotiation with Google's YouTube TV enters day 12, according to Morgan Stanley analysts cited by Variety. That's $30 million a week streaming straight into the void while Americans lose access to everything from Monday Night Football to Good Morning America.
But Google isn't escaping unscathed either. A Drive Research survey of 1,100 US consumers found that 24% have already canceled their YouTube TV subscriptions or plan to - a devastating subscriber exodus that could reshape the streaming landscape.
The drama started at 11:59 PM ET on October 30th when more than 20 Disney-owned channels went dark after their distribution contract expired. What followed reads like a corporate blame game manual, with each side painting the other as the unreasonable party holding consumers hostage.
Google accuses Disney of yanking its channels as a "negotiating tactic" and claims Disney's terms would force YouTube TV to raise prices on customers. Meanwhile, Disney fires back that Google is "refusing to pay fair rates" for premium content that includes ESPN's live sports programming and ABC's primetime shows.
The timing couldn't be worse for either company. Disney's betting heavily on direct-to-consumer streaming revenue as traditional cable bleeds subscribers, while Google's YouTube TV has positioned itself as the cord-cutter's premium alternative to traditional pay-TV. Now both are discovering that their interdependence runs deeper than either probably wanted to admit.
Google has been offering $20 credits to YouTube TV subscribers during the blackout - a gesture that likely costs millions but pales next to Disney's daily losses. The credit also serves as a tacit admission that YouTube TV without Disney's marquee content isn't worth the full subscription price.
