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Walt Disney Co. executives connected Thursday warned that the company's quality with YouTube could resistance on, leaving subscribers to the Google-owned video level without entree to ABC, ESPN, FX and different programming from the amusement giant.
Disney channels went acheronian connected YouTube TV connected Oct. 30 amid a alleged carriage quality betwixt the 2 companies. YouTube said successful a blog post last period that Disney had followed done connected a menace to propulsion its networks "as a negotiating maneuver to unit woody presumption that would rise prices connected our customers."
Asked successful a Thursday capitalist telephone astir the ongoing negotiations, Disney Chief Financial Officer Hugh Johnston said that "these discussions could spell for a small while," without providing a timeframe oregon further details.
"[W]e attraction profoundly astir our consumer," Disney CEO Robert Iger said successful the call. "And our precedence has ever been to stay connected their work without interruption to adjacent a woody connected a timely ground truthful that interruption does not occur. The woody that we person projected is adjacent to oregon amended than what different ample distributors person already agreed to."
What are carriage fees?
Providers of pay-TV services similar YouTube TV wage carriage fees to web owners, including Disney, for the close to broadcast their channels. Disputes implicit the fees are common, with contented providers often astatine loggerheads with TV networks implicit commercialized presumption erstwhile their deals expire.
The conflicts sometimes effect successful viewers losing entree to a company's channels oregon contented if the negotiations widen beyond the extremity of a contract.
Disney claimed past month that YouTube TV is refusing to wage just rates for its channels and has chosen to "deny their subscribers the contented they worth most," pointing to its ESPN sports broadcasts and ABC shows specified arsenic "High Potential."
YouTube has countered that Disney "is proposing costly economical presumption that would rise prices connected YouTube TV customers and springiness our customers less choices," according to an Oct. 23 blog post.
YouTube, the largest net TV supplier successful the U.S. with much than 9 cardinal subscribers, said past period that it would connection a $20 recognition if Disney's contented remains unavailable connected YouTube TV for "an extended play of time." The streaming level costs $82.99 per month.
Google didn't instantly respond to a petition for remark astir Johnston's remark oregon whether YouTube is presently offering the $20 recognition to customers.
Disney connected Thursday besides reported mixed fourth-quarter results, with weaker maturation from cablegram and the container bureau somewhat offset by spot successful its streaming concern and taxable parks.
Although the company's nett topped expert estimates, Disney's $22.4 cardinal successful gross for the 4th fell abbreviated of Wall Street forecasts of $22.8 billion. Sales astatine its Disney Entertainment unit, which includes the company's movie studios and streaming service, dropped 6%, portion gross for its parks part climbed 6%.
Shares of Disney tumbled $10.83, oregon 9.3%, to $105.84 successful Thursday day trading.
Edited by Alain Sherter
The Associated Press contributed to this report.
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