Core Viewpoint - The ongoing carriage dispute between Disney and YouTube TV has led to significant financial implications for Disney, with uncertainty regarding the duration of the blackout and its impact on operations [1][2][3]. Financial Impact - Disney is reportedly losing $30 million per week due to the dispute, which has now lasted for 14 days, marking the longest carriage blackout in the company's history [3]. - The company's revenue for the quarter was $22.46 billion, slightly below analyst expectations, while adjusted earnings were $1.11 per share, exceeding expectations [4]. Contractual Challenges - Disney's channels were removed from YouTube TV following the expiration of their distribution contract on October 30, 2025, without an agreement on renewal terms [2]. - The company expressed concerns about potentially losing programming or distribution rights if contracts with other pay-TV providers, expiring in 2026, are not renewed on acceptable terms [4]. Rising Costs - Disney acknowledged that the rising costs of sports rights present a challenge, with the company indicating that the cost of obtaining certain programming rights has increased and may continue to do so [5]. - There is uncertainty regarding whether revenues from programming based on these rights will exceed the associated costs of rights acquisition and production [5].

Core Viewpoint - The ongoing blackout of YouTube TV subscribers, now in its 13th day, is part of a standoff between Disney and YouTube over the valuation of Disney's TV networks, with both companies blaming each other for the impasse [1][2]. Group 1: Current Situation - The blackout has reached a duration that ties with Disney's longest dispute, previously seen with DirecTV in 2024, and has surpassed earlier disputes with Charter's Spectrum and Dish Network [2]. - The longest major carriage dispute in modern history lasted nearly three years between HBO and Dish, highlighting the significance of such standoffs in the industry [2]. Group 2: Stakeholder Positions - Disney holds several competitive alternatives to YouTube TV, such as Fubo and Hulu + Live TV, while YouTube TV is supported by Alphabet, which has a market capitalization of $3.5 trillion [3]. - Analysts believe that the financial implications of the dispute will likely lead to a resolution before Disney's upcoming earnings report [3][8]. Group 3: Analyst Insights - Rich Greenfield from Lightshed Partners expressed confidence that a deal would be reached before Disney's earnings call, emphasizing the importance of TV revenue for ESPN [3][8]. - Joe Bonner from Argus Research noted surprise at the lack of a resolution, especially given the missed opportunities for resolution during significant sports events [8][9]. - The absence of a deal before the earnings call could lead to negative reactions from analysts, as the TV business is crucial for Disney's financial performance [9].