Disney Warns of Long Dispute with YouTube TV as Shares Drop 8%: Full Report
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Disney signals a prolonged dispute with YouTube TV over channel distribution, causing shares to fall 8%. Read full details on the blackout, revenue impact, streaming performance, and company outlook.
📉 Disney Shares Drop as YouTube TV Blackout Extends
Walt Disney Co. has warned that its ongoing dispute with YouTube TV may last longer than expected, raising concerns about the future of its declining traditional TV business. The news triggered an 8% fall in Disney’s stock, despite strong performance in its streaming and parks divisions.
Disney’s networks were removed from YouTube TV (10 million subscribers) on October 30, marking another major carriage dispute after NBCUniversal’s similar clash earlier this year.
⚠️ Why Disney vs YouTube TV Matters
During the earnings call, CFO Hugh Johnston said Disney has “built a hedge” into financial forecasts, assuming the blackout could continue.
Industry experts say YouTube TV’s fast growth and Alphabet’s financial strength give it significant leverage in negotiations.
“Its absence is a big hole for sports fans,”
said Ross Benes, Senior Analyst at Emarketer.
💸 Financial Impact: What Disney Could Lose
According to Morgan Stanley analysts:
- A 14-day blackout may cost Disney around $60 million
- Disney insists the deal offered to YouTube TV is equal or better than deals with other distributors
CEO Bob Iger said Disney must secure a deal that reflects the true value of its content.
📊 Disney Q4 2025 Financial Highlights
Revenue & Earnings
- Total revenue: $22.5 billion (below $22.75B estimates)
- Adjusted EPS: $1.11 (down 3%)
- Dividend: Boosted by 50% to $1.50/share
- Share buyback for FY2026: Increased to $7 billion
📺 Traditional TV Declines as Streaming Surges
TV Segment
- Profit down 21% to $391 million
- ESPN income also slipped
- Weak television results overshadowed gains in other divisions
Streaming Division
- Profit increased 39% to $352 million
- Disney+ + Hulu added 12.5 million subscribers
- Total streaming base: 196 million+
- New Charter Communications deal boosted subscriber growth
🎢 Parks & Experiences See Strong Growth
Disney’s theme parks and experiences unit reported:
- Income up 13% to $1.88 billion
- Boost from U.S. cruise ship expansion
- Growth at Disneyland Paris
🎬 Entertainment Division Struggles
Operating income dropped over 33% as this year’s films underperformed compared to last year’s blockbusters like Inside Out 2 and Deadpool & Wolverine.
🤖 Disney Exploring AI for Future Content Creation
Bob Iger confirmed that Disney is in discussions with several AI companies, focusing on:
- Protecting Disney characters and stories
- Using AI to let Disney+ users create short-form content
- Enhancing platform interactivity and engagement
“Phenomenal opportunities to deploy AI across our platforms,”
said Iger.
📌 Final Takeaway
Disney faces a critical negotiation challenge with YouTube TV as traditional broadcast revenue continues to decline. However, strong streaming growth, park performance, and AI-driven plans indicate promising long-term potential.
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