Disney has disclosed the financial impact of its carriage dispute with YouTube TV, revealing the blackout cost the company about $110 million in operating income.
The 15-day standoff in November left YouTube TV subscribers without access to Disney-owned channels, including ESPN and ABC. Disney said the disruption contributed to a 23% year-over-year decline in operating income for its sports division, which reported $191 million for the quarter.
The company said the drop was driven by the YouTube TV dispute, higher programming and production expenses, and lower subscription and affiliate revenue.
The disagreement centered on how much YouTube TV was willing to pay to carry Disney’s networks. Disney argued its content — including major sports rights like Monday Night Football and college football — was being undervalued, while YouTube warned higher fees would force it to raise prices for customers.
The blackout was the longest in Disney’s history. Analysts at Morgan Stanley had estimated Disney was losing around $30 million a week during the dispute.
Despite the setback, Disney reported record streaming profits for the quarter following recent price increases and exceeded Wall Street expectations on revenue and earnings.
Disney shares fell about 2% in premarket trading, and the company warned that profit growth in its parks division would likely be modest due to weaker international tourism.