Disney and YouTube TV Clash Over Carriage Rights: A Brewing Battle

Disney is engaged in a tense negotiation with YouTube TV over distribution rights, impacting its television networks. The dispute highlights Disney's shift towards streaming amid declining traditional TV revenues. Meanwhile, Disney's streaming and theme parks divisions demonstrate strong growth, with a focus on AI exploration.

On Thursday, Disney signaled an extended dispute with YouTube TV over distribution rights for its television networks, raising investor concerns about Disney's faltering TV business. The company's stocks fell by 8.3% after it missed quarterly revenue expectations due to cable weaknesses, despite growth in streaming and parks sectors.

The blackout of Disney networks from YouTube TV, a major U.S. pay-TV provider, highlights the ongoing battle over carriage rights. Analyst Ross Benes notes Disney's move to reduce dependency on cable TV carriers. A 14-day blackout could cost Disney around $60 million, according to Morgan Stanley estimates.

Disney CEO Bob Iger remains optimistic about achieving a favorable agreement, emphasizing the value Disney brings to platforms. Despite a drop in traditional TV unit profits, Disney reported revenue growth in its parks division and increased its dividend and share buyback plan in response to the evolving media landscape.

(With inputs from agencies.)