YouTube TV Isn’t Budging in Its High-Profile Fight with Disney
YouTube TV is standing firm in its ongoing dispute with Disney, and it brings significant leverage beyond its Google backing. The popular pay-TV service has emerged as an industry titan and is on track to catch its cable TV rivals in the coming years, according to analysts.
For over a week now, Disney’s TV networks, including ESPN and ABC, have been absent from the Google-owned streaming service. Disney claims that YouTube TV isn’t properly valuing its channels, while YouTube TV warns customers that conceding would lead to higher prices.
Both Disney and ESPN argue that YouTube TV is being unreasonable and can afford to play hardball, given its connection to Google. While Disney is a corporate behemoth valued at $200 billion, it is still roughly 17 times smaller than Google’s parent company, Alphabet, which holds the position of the fourth-largest company globally with a market value of $3.4 trillion.
YouTube TV: More Than Just Google’s Side Project
Contrary to being a small operation propped up by a generous tech giant, YouTube TV is a robust business generating significant cash flow. Although it might not yet be a primary revenue driver for Alphabet, industry experts see growing influence.
Ric Prentiss of Raymond James noted that this dispute “is indicative of YouTube TV wielding increased bargaining power.”
Fast Growth Amid Industry Decline
YouTube TV has been the fastest-growing major TV provider over recent years. Its subscriber base has soared from 2 million in late 2019 to approximately 10 million paying customers today. This growth contrasts sharply with the shrinking subscriber counts faced by most competitors.
According to analysts at MoffettNathanson, Google’s live TV service is now the third-largest pay-TV provider, standing behind cable giants Charter and Comcast. The research firm projects that YouTube TV will surpass these incumbents within the next two years and become the industry leader.
Michael Nathanson of MoffettNathanson emphasized: “Given the rapid growth of YouTube TV, especially in the context of the accelerating decline of traditional pay TV providers, it is quickly becoming a crucial player in the linear TV ecosystem.”
Revenue Growth and Future Projections
MoffettNathanson estimates YouTube TV’s revenue has jumped from less than $1 billion in 2019 to nearly $8 billion in 2024. Earlier this year, the service was on pace to hit $9.6 billion in revenue by 2025, with projections reaching $11.6 billion by the end of 2027.
This impressive growth has occurred despite fierce competition from other “virtual pay-TV services” that brought the traditional channel bundle to streaming. Early movers like Fubo and Sling TV launched as early as 2015, with Hulu + Live TV and DirecTV Stream (formerly DirecTV Now) arriving a few years later.
Popular Among Younger Audiences and Sports Fans
These streaming services have become especially popular with younger viewers who prefer streaming and sports fans eager to watch games conveniently. YouTube TV has emerged as the biggest and best-known among these options.
Challenges Ahead: The Future of the Pay-TV Bundle
Despite its growth, YouTube TV faces existential questions about the future of the traditional pay-TV bundle. Sports content, a major driver of subscriptions, is increasingly migrating to stand-alone streaming platforms rather than bundled services.
Examples include “Thursday Night Football” on Amazon Prime Video and NBA and NFL games available through Peacock. This shift has accelerated cord-cutting trends, impacting YouTube TV as well.
A Key Part of Google’s Strategic Vision
While YouTube TV might not be a make-or-break business for Google and Alphabet, it is far from a struggling vanity project. Instead, it plays a crucial role in Google’s broader strategic vision to own the living room.
Given its stature as a top pay-TV provider, it’s difficult to envision Disney walking away from business with YouTube TV. Likewise, YouTube and Google can hardly afford to spurn Disney if they intend to be major players in the TV market.
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This dispute highlights the growing stakes as streaming and traditional TV landscapes evolve — with YouTube TV swiftly rising from a challenger to a dominant force that both Disney and Google have to reckon with.
https://www.businessinsider.com/youtube-tv-google-leverage-disney-espn-carriage-dispute-fight-cable-2025-11
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