Disney Shares Fall Amid YouTube TV Dispute, Revenue Miss
- tech360.tv
- Nov 14, 2025
- 3 min read
Disney shares fell 8.3% as the company signalled it was preparing for a prolonged dispute with YouTube TV. This worried investors about the outlook for its declining television business.
The company also missed quarterly revenue expectations. Weakness in cable overshadowed strong growth in its streaming and parks operations, which are central to its growth strategy.
Disney's networks disappeared from YouTube TV, the fourth-largest pay-television provider in the U.S., in a recent carriage rights dispute. YouTube TV has approximately 10 million subscribers.
Chief Financial Officer Hugh Johnston told analysts that Disney has built a hedge into its forecasts. This assumes negotiations with YouTube TV could continue for an extended period.
Senior Analyst Ross Benes of Emarketer noted that Disney is reducing its reliance on cable companies for channel distribution. He added that cutting out video distributors will take time.
Benes stated that YouTube TV is one of the leading cable television providers. Its absence creates a significant gap for sports fans.
Morgan Stanley analysts estimate a 14-day blackout on YouTube TV would cost Disney approximately USD 60 million in revenue. The tense discussions highlight YouTube TV's rapid growth.
They also underscore Google's vast financial resources, which provide greater leverage in negotiations with media companies.
CEO Bob Iger stated that Disney's proposed deal is equal to or better than what other large distributors have already agreed to. Iger's current contract expires at the end of 2026.
Iger also mentioned that Disney is working tirelessly to restore its channels, but the deal must reflect the value they deliver. Both YouTube and Alphabet have indicated this value is greater than any other provider.
Disney's quarterly revenue was USD 22.5 billion, comparable to a year ago. However, it was shy of the USD 22.75 billion analyst forecast.
Profit in the traditional television unit decreased by 21% to USD 391 million. Income from ESPN also slipped, offsetting gains in other divisions.
Earnings from streaming rose 39% to USD 352 million. Disney has invested more in streaming and its parks to counter the industry-wide decline in traditional broadcast and cable television.
The media and entertainment giant plans to increase its dividend by 50% to USD 1.50 a share. It will also double its share buyback plan to USD 7 billion for fiscal 2026.
The company reported adjusted earnings per share of USD 1.11 for the most recent quarter. This was down 3% from a year earlier but USD 0.06 above the average LSEG estimate.
Profit in Disney's theme parks unit increased by 13% to USD 1.88 billion. This was partially due to an expansion of the U.S. cruise ship business and growth at Disneyland Paris.
Disney added 12.5 million subscribers to Disney+ and Hulu during the quarter. This brought the total to 196 million subscribers.
A new distribution deal with cable and broadband provider Charter Communications helped attract new streaming customers. This was confirmed by Johnston.
Operating income at the entertainment division dropped by more than a third to USD 691 million. This was because this year's films did not match the success of last year's hits "Inside Out 2" and "Deadpool & Wolverine."
Iger confirmed Disney has held discussions with artificial intelligence companies. The company is exploring how to use AI technology while protecting its characters and stories.
Iger sees phenomenal opportunities to deploy AI across Disney's direct-to-consumer platforms. This includes providing tools to make platforms more dynamic and engaging for consumers, and allowing consumers to create short-form content.
Disney shares fell 8.3% amid concerns over a prolonged dispute with YouTube TV and missed quarterly revenue expectations.
Disney's networks disappeared from YouTube TV, affecting approximately 10 million subscribers and potentially costing USD 60 million in revenue for a 14-day blackout.
Despite a decline in traditional television profit, Disney reported growth in streaming subscribers and theme park earnings.
Source: REUTERS
