DISNEY’S SPORTS DIVISION took a $110 million hit to operating profit following a carriage dispute with YouTube TV last autumn, according to the company’s latest financial disclosure released on Monday, equating to losses of roughly $7.8 million per day.
The two-week standoff, which was resolved in November, left YouTube TV subscribers without access to ESPN’s networks, ABC, Disney-branded channels, Freeform, FX networks and National Geographic, disrupting viewing across both sports and entertainment programming.
Within the sports segment, operating profit fell 23% to $191 million. In addition to the YouTube TV carriage dispute, the division was affected by lower sports subscription and affiliate fees linked to the Star India transaction. Rising programming and production expenses driven by contractual rate increases and the acquisition of new sports rights also weighed on results. These costs were partially offset by the timing of NBA and college sports rights payments under new agreements, including the impact of a reduced number of regular-season NBA games.
Disney’s entertainment segment also reported a decline, with operating profit down 35% to $1.1 billion. However, Disney+ and Hulu posted strong gains, with their combined operating profit rising 72% to $450 million. In contrast, the company’s remaining entertainment businesses saw combined profits fall 55% to $650 million. Disney did not specify the precise financial impact of the YouTube TV dispute on the entertainment division.
Under the renewed carriage agreement, YouTube TV will continue to carry all of ESPN’s networks, ABC, Disney-branded channels, Freeform, FX networks and National Geographic. The deal also includes access to ESPN Unlimited for YouTube TV base-plan subscribers at no additional cost by the end of 2026, alongside a selection of live and on-demand content.
The agreement further preserves flexibility for YouTube TV to explore future programming bundles with Disney and other content partners. This includes the option to offer genre-specific channel packages and to integrate the Disney+ and Hulu bundle into select YouTube TV offerings.
