Disney and YouTube TV reached a multi‑year carriage agreement that ends a two‑week blackout that began on October 30. The deal restores Disney’s full suite of linear networks—including ABC, ESPN, FX, NatGeo, Disney Channel and Freeform—to YouTube TV subscribers, and gives subscribers free access to Disney’s new ESPN direct‑to‑consumer service. It also allows YouTube TV to offer the Disney+ + Hulu bundle in select packages.
The blackout had cost Disney an estimated $30 million per week in lost carriage fees and advertising revenue. The agreement recovers that revenue stream and mitigates subscriber churn that had been reported by YouTube TV users during the outage. The deal comes at a time when Disney’s Q3 fiscal 2025 revenue rose 2% to $23.7 billion and its operating margin expanded to 15.5% from 12.6% a year earlier, underscoring the financial importance of linear carriage for the company’s profitability.
Disney Entertainment co‑chairs Alan Bergman and Dana Walden said the agreement “reflects our continued commitment to delivering exceptional entertainment and evolving with how audiences choose to watch.” CEO Bob Iger added that securing distribution for Disney’s programming is essential, noting that the blackout had highlighted the value of the company’s content and the need to maintain strong partnerships.
Analysts noted that the resolution of the dispute removes a significant headwind that had been cited in Disney’s Q3 earnings report. The deal is seen as a positive step for Disney’s distribution strategy, though some analysts remain cautious about ongoing carriage negotiations and the potential for future disputes.
Strategically, the pact reinforces Disney’s dual focus on expanding its direct‑to‑consumer footprint while maintaining linear partnerships. By offering ESPN Unlimited at no extra cost and enabling bundling of Disney+ and Hulu within YouTube TV packages, Disney strengthens its sports portfolio on a major streaming platform and expands its ecosystem reach, positioning the company to capitalize on its content library across both linear and streaming channels.
The multi‑year agreement secures a steady revenue stream, reduces churn risk, and positions Disney to benefit from its content across multiple distribution channels, marking a significant win for the company’s broader distribution strategy.
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