Disney’s fourth-quarter earnings call wasn’t just bad news for investors, who saw shares drop nearly 8 percent Thursday, but also for YouTube subscribers hoping to regain access to ESPN.
Discussing its licensing impasse with the video-sharing platform and streaming service, Disney CFO Hugh F. Johnston said Thursday morning that the company is ‘ready to go as long as YouTube TV wants to,’ according to sports business reporter Joe Pompliano.
Disney, which owns ABC and ESPN’s array of networks, has failed to agree on a new distribution contract with YouTube. While the entertainment conglomerate claims YouTube hasn’t been paying fair value for ESPN and ABC, the website has argued Disney’s demands would lead to higher prices and fewer options for customers.
YouTube TV has offered a $20 credit to its 10 million subscribers since ESPN and ABC left its platform on October 30.
Disney’s struggles in cable and at the box office were offset by its streaming business and theme parks, according to multiple reports. Company shares were up 73 cents apiece in the fourth quarter of 2025.
Thursday’s earnings call followed the revelation of an internal memo indicating the company’s willingness to hold out for a better deal with YouTube.
Disney CFO Hugh Johnston said the company is ready to wait out YouTube on this impasse
A recent memo signed by ESPN chairman Jimmy Pitaro indicates the company’s resolve
‘Rather than compete on a level playing field, Google’s YouTube TV has approached these negotiations as if it were the only player in the game,’ read the memo, reported by The Athletic, which was signed by Disney Entertainment co-chairmen Dana Walden and Alan Bergman, along with ESPN chairman Jimmy Pitaro.
‘It goes without saying that the reason so many consumers value our programming above others is because we invest in the best talent, creators and content in the world, and we cannot allow anyone to undercut our ability to do so.’
They also say Disney has offered YouTube TV ‘fair terms that are in line with the more than 500 other distributors that have renewed their agreements since last summer, including the top distributors, who are far larger than YouTube TV.’
In response, a spokesperson for YouTube TV said: ‘Once again, Disney is resorting to their old tactics like leaking documents to the press, negotiating in public through their paid talent and misrepresenting the facts including from the deals they’ve offered and taking credit for our product proposals.
‘Our team stands ready to make a fair agreement in line with their deals with other distributors and we encourage Disney to come to the table and do what’s best for our mutual customers.’
YouTube is the largest internet TV provider in the US with 10 million subscribers. Hulu, owned by Disney, is next, with about half that many subscribers.
