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Monday Night Football and other key Disney properties are leaving YouTube TV. The change happened so quickly that YouTube TV subscribers with full sports packages have to find another place to watch Monday’s Divisional Bear-Vikings Challenge.
“As of December 17, 2021, at the end of the day Eastern Time, all Disney-owned channels, including ESPN and your local ABC station, are not available on YouTube TV,†it read. a publication on the YouTube TV website. Even recordings stored in the cloud leave YouTube TV.
This includes ESPN, ABC, Disney, National Geographic, FX, and other channels.
It’s a problem for YouTube TV parents
Alphabet
(ticker: GOOGL), although small. The monthly price for subscribers drops by $ 15 per month, or $ 180 per year. YouTubeTV has around 4 million subscribers. That’s $ 720 million in annual revenue.
Of course, the content might not be off the platform forever. And the opposite side of this equation probably works, too.
Disney
(DIS) is losing money from a viewing platform.
Alphabet’s estimated revenue in 2022 is currently around $ 245 billion. Disney’s revenue estimate for fiscal 2022 averages around $ 84 billion.
The impact seems small compared to the size of either company. While spat may not have much of an impact on either stock, it is an illustration of the evolution of dissemination and display of content. YouTube TV aggregated and delivered content just like cable companies. YouTube, of course, also has users who download and watch billions of hours of videos every day. And traditional content provider Disney now has its own streaming services Hulu, ESPN + and, of course, Disney +.
Although the generation and delivery of content has changed, price negotiations have not changed.
It’s hard to find the impact of any trading of content reflected in Alphabet’s stock. Equities were the big winners in 2021, up around 62% year-to-date, ahead of comparable comparable returns of 23% and 16% of the
S&P 500
and
Dow Jones Industrial Average.
Disney shares have had a tougher time, shares are down about 18% so far in 2021.
Since news of content trading broke a few days ago, Alphabet stock has been down around 2%. Disney action is down slightly. the
Nasdaq composite
is also a little, less than 1%, over the same period.
Write to Al Root at [email protected]
