Disney States Its Case
I’ve been reading the internet since the Mosaic days (IYKYK), and I’ve learned one thing.
I never read the comments as a rule. That path leads to madness, and we all know it’s true.
Photo:seoclerk.com
Still, I make an exception on a couple of sites, most notably Deadline.
One thing I’ve noticed there recently is that a LOT of people are mad at Disney right now, especially in Deadline’s comments section.
Photo:buildcreate.com
This recent carriage dispute with YouTube TV is a bridge too far for many.
During Disney’s most recent earnings call, CEO Bob Iger vacillated between bored and irritated.
Photo: Variety
Iger did his job, though, as Disney has stated its case. Here’s what we learned during the call.
“One More Thing…”
This earnings call generally proved a dull affair, with a vibe of, “We’re only here because we have to be.”
If you didn’t know, publicly traded corporations face a legal obligation to file these quarterly reports.
Photo: Disney
The earnings call comes with the territory, and Iger knows he’s down to his last few of them.
At most, Iger has four more before he retires at the end of 2026, and there’s a chance he leaves earlier.
Photo: Getty
On Thursday, he sounded like someone who was over it, and I understand why.
The Disney of today is less powerful than the one of 20 years ago, which is nobody’s fault.
Photo: Disney
Tech companies took over corporate society, which has created unexpected issues for Iger.
He never could have foreseen the richest man in India spending billions on cricket and then giving it away.
Photo: BBC
Similarly, Iger couldn’t have anticipated Google getting a heavyweight in the cable industry.
After all, the company’s very existence has disrupted cable in a fatal manner.
Credit: Shutterstock / Thaspol Sangsee
So, the creation of YouTube TV and its ascension into the top three in the marketplace is, well, shocking.
Iger’s not used to getting pushed around, but he finds himself in a squabble with a $3 trillion company.
Photo: YouTube
Just to be clear, Google’s worth the equivalent of 300 Mukesh Ambani’s, and Disney had to work with him.
Since Google’s on an entirely different scale, you can imagine how challenging this negotiation is.
Anadolu/GettyImages
Iger absorbed criticism on Monday for appearing on Monday Night Football’s Manning Cast.
The entire purpose of his guest spot seemed to be a discussion about YouTube TV.
Photo: ESPN
That topic didn’t come up once during the virtual hangout session, which made the internet cackle.
So, moments before the earnings call ended, Iger spoke his peace on the matter.
Here’s the Quote
What did Disney’s leader say about the standoff? Well, it was a fairly long rant. Here’s the meat of it:
“First of all, obviously, we care deeply about our consumer, and our priority has always been to remain on (YouTube TV’s) service without interruption.
Photo: Disney
(We want) to close a deal on a timely basis so that interruption does not occur.
The deal that we have proposed is equal to or better than what other large distributors have already agreed to. We’re not trying to really break any new ground.
Photo: Disney
While we’ve been working tirelessly to close this deal and restore our channels to the platform, it’s also imperative that we make sure that we agree to a deal that reflects the value that we deliver, which both YouTube, by the way, and Alphabet have told us is greater than the value of any other provider.
Bob Iger – 2023 Annual Shareholder Meeting
We’re not trying to break new ground. The offer that’s on the table is commensurate with deals that we’ve already struck with actual distributors that are larger than they are.”
That’s a VERY frustrated individual right there. Iger is telling everyone that Disney has done its part.
Mandatory Credit: Photo by JUSTIN LANE/EPA-EFE/Shutterstock
While I’m confident Google/YouTube TV executives would say the same, Iger threw down the gauntlet.
That’s him flatly stating that Disney has made an offer that other cable vendors accepted.
(Charley Gallay / Getty Images for Disney)
I suspect he’s telling the truth, too. What’s different here is that YouTube TV officially is a rising brand.
Also, it’s Google, which makes it powerful. The executives on that side want to establish a new standard.
Photo: DIsney+
They’re trying to get a deal from Disney that none of the other cable vendors can get.
What Happens Next?
As I mentioned during the Charter negotiation, Disney held all the power there.
That’s not the case here, as Google appears willing to tank YouTube TV in the short term.
Photo: Disney
Iger explicitly states that Google execs know that Disney brings the most value to YouTube TV.
They’ve apparently told him as much, but that’s the thing about the power of Google.
Photo: Disney
They can wait Disney out on a deal as long as the number of subscriber cancellations is tolerable.
This brings me back to the Deadline comments and some other polls I’ve watched.
Walt Disney Company
For example, Awful Announcing reported on a poll about who’s to blame.
“The survey shows that 58% of respondents believe both networks are equally at fault, 37% blamed Disney, and just 5% blamed YouTube TV.”
The Walt Disney Company
The Athletic did its own poll, and it’s arguably even worse for Disney.
Their subscribers blame Disney more than YouTube TV at a 64 percent to eight percent rate.
The Walt Disney Company
Disney’s definitely losing the PR battle here, which has ripple effects beyond today.
Even if Disney and YouTube TV have come to an agreement by the time you read this, the message is clear.
The Walt Disney Company
Disney cannot keep doing this with cable carriers. These memories linger, and fans are siding against the owner of ESPN.
So, no matter how frustrated Iger sounds, the people who pay for YouTube TV and streaming services are that much angrier.
Photo: Disney
Disney’s in the same place it was in mid-2022. It needs a quiet few months of news cycles.
Otherwise, Iger’s successor will be placed in an adversarial position from the start.
Photo: MickeyBlog
Thanks for visiting MickeyBlog.com! Want to go to Disney? For a FREE quote on your next Disney vacation, please fill out the form below, and one of the agents from MickeyTravels, a Diamond Level Authorized Disney Vacation Planner, will be in touch soon!
