Disney CFO Hugh Johnston Vows to Go the Distance in Carriage Battle

In an exclusive interview with CNBC, Disney's Chief Financial Officer (CFO), Hugh Johnston, has set a bold tone for the company's ongoing carriage battle with YouTube TV. The CEO of Disney's cable networks division, Bob Chapek, recently announced that the company would be withdrawing its request from a dispute resolution process with YouTube TV. However, Johnston is ready to take on the challenge and engage in a long-term battle.

Carriage Battle Overview

The carriage battle refers to the ongoing dispute between Disney's cable networks division and YouTube TV over access to Disney's content. YouTube TV, a streaming service owned by Alphabet Inc., had previously secured carriage deals with several major broadcast networks, including ABC, CBS, NBCUniversal, and FOX. However, the deal did not include access to Disney's content.

In response, Disney announced its intention to withdraw from the dispute resolution process and instead pursue a long-term agreement with YouTube TV. This move would allow Disney to maintain control over its content while also giving YouTube TV access to its popular channels.

Johnston's Confidence

During his interview with CNBC, Johnston expressed confidence in Disney's ability to navigate the carriage battle. "We're ready to go as long as the negotiations don't break down," he said. This statement suggests that Disney is willing to engage in a long-term dispute resolution process if necessary.

However, there are indications that YouTube TV may be willing to walk away from the deal if it cannot secure access to Disney's content. In response to questions about the potential for a carriage dispute, Johnston stated that "we're ready to go as long as we can."

Possible Scenarios

Several possible scenarios have emerged in the context of the carriage battle between Disney and YouTube TV.

Scenario 1: Long-Term Agreement

In this scenario, both parties agree on a long-term agreement that would give YouTube TV access to Disney's content. This arrangement would likely involve a combination of fee concessions and concessions related to advertising revenue.

Scenario 2: Short-Term Deal with Concessions

In this scenario, the two parties reach a short-term agreement that provides YouTube TV with limited access to Disney's content. This deal may include concessions related to advertising revenue or other conditions that make it less favorable for Disney.

Scenario 3: Dispute Resolution Process

In this scenario, both parties agree to pursue a dispute resolution process to resolve the carriage battle. This could involve mediation, arbitration, or litigation.

Carriage Battle Implications

The carriage battle between Disney and YouTube TV has significant implications for several stakeholders, including:

• Disney's Content: The carriage battle affects access to Disney's content for millions of viewers.
• YouTube TV Subscribers: The dispute may impact the value proposition offered by YouTube TV, potentially leading to increased churn among subscribers.
• Broadcaster Networks: The carriage battle has significant implications for broadcaster networks that have secured deals with YouTube TV.

Conclusion

In conclusion, Disney's CFO Hugh Johnston is ready to engage in a long-term carriage battle with YouTube TV. While the company has expressed confidence in its ability to navigate the dispute, there are indications that both parties may need to make concessions in order to reach a mutually acceptable agreement. The outcome of this dispute will have significant implications for several stakeholders and could shape the future of the streaming industry.

Possible Outcomes

Some possible outcomes of the carriage battle between Disney and YouTube TV include:

• Long-term agreement: Both parties agree on a long-term agreement that gives YouTube TV access to Disney's content.
• Short-term deal with concessions: The two parties reach a short-term agreement that provides limited access to Disney's content in exchange for concessions related to advertising revenue or other conditions.
• Dispute resolution process: Both parties pursue a dispute resolution process, potentially involving mediation, arbitration, or litigation.

Recommendations

Based on the current state of the carriage battle between Disney and YouTube TV, several recommendations can be made:

• Monitoring negotiations closely: Both parties should continue to monitor negotiations closely and be prepared to make concessions as necessary.
• Maintaining flexibility: Both parties should maintain flexibility in their positions to facilitate a mutually beneficial agreement.
• Seeking expert advice: Both parties may benefit from seeking expert advice on dispute resolution processes or carriage agreements.

Conclusion

In conclusion, the carriage battle between Disney and YouTube TV is a complex issue with significant implications for several stakeholders. The outcome of this dispute will have far-reaching consequences for the streaming industry and its users.