Disney Shares Fell 9%: Crisis Process with YouTube TV!

Disney shares fell about 9% on Thursday morning after the company indicated it could enter a protracted battle over the distribution of its TV channels with YouTube TV. YouTube TV removed Disney networks from its platform on October 30; this marked the latest distribution rights dispute among entertainment giants. Earlier this year, NBCUniversal faced a similar issue.

Morgan Stanley analysts estimate that the 14-day blackout period on YouTube TV could result in approximately $60 million in lost revenue for Disney.

These tense negotiations highlight YouTube TV's rapidly rising growth rate and the extensive financial resources of its parent company, Alphabet, which provide the company with greater leverage in corporate negotiations. The distribution struggle and lower-than-expected quarterly revenue overshadowed some positive indicators in Disney's third-quarter results.

Nevertheless, Disney exceeded profit expectations thanks to strong growth in its streaming and parks businesses. During the quarter, the company added 12.5 million new subscribers to its Disney+ and Hulu platforms, bringing the total number of users to 196 million. Additionally, the company announced intentions to increase its dividend by 50% by the 2026 fiscal year and to double its share buyback plan.