Disney Battles YouTube TV Amidst Streaming Boom

Walt Disney braces for a prolonged dispute with YouTube TV over network distribution, affecting its TV business and shares. Despite the TV sector's decline, Disney sees strong growth in theme parks and streaming. It boosts dividends and stock buybacks, adapting to the changing media landscape.

Disney announced on Thursday a potential long-term dispute with YouTube TV over channel distribution, impacting its traditional TV business and leading to an 8% drop in shares. The disagreement coincides with Disney missing quarterly revenue expectations, despite positive growth in streaming and theme parks.

In a post-earnings call, Disney's CFO Hugh Johnston emphasized the company's preparations for extended negotiations, as Disney channels were removed from YouTube TV in a recent carriage rights conflict. This follows similar clashes, highlighting YouTube TV's rapid ascent and Google's negotiation power.

Even as traditional TV revenue declines, Disney reports a surge in its streaming sector and a growing theme park unit. The media giant plans to raise dividends by 50% and double its share buyback strategy, positioning itself against an industry-wide shift from cable TV to digital platforms.

(With inputs from agencies.)