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YouTube TV customers are bracing for another frustrating weekend.

For the last week, YouTube TV’s 10 million subscribers have been denied access to ESPN, ABC and other Walt Disney Co. channels in a dispute that has swelled into one of the largest TV blackouts in a decade. Instead of turning on “College GameDay,” “Monday Night Football” or “Dancing With the Stars,” customers have been greeted with a grim message: “Disney channels are unavailable.”

The standoff began Oct. 30 when the two behemoths hit an impasse in their negotiations over a new distribution contract covering Disney’s channels and ABC stations.

Google, which owns YouTube, has rebuffed Disney’s demands for fee increases for ESPN, ABC and other channels. The Burbank entertainment giant has been seeking a revenue boost to support its content production and streaming ambitions, and help pay for ESPN’s gargantuan sports rights deals.

Talks are ongoing, but the two sides remain apart on major issues — prolonging the stalemate.

“Everyone is kind of sick of these big-time companies trying to get the best of one another,” said Nick Newton, 30, who lives near San Francisco and subscribes to YouTube TV. “The people who are suffering are the middle-class and lower-class people that just love sports … because it’s our escape from the real world.”

Both companies declined to comment for this article.

The skirmish is just the latest between YouTube and programming companies. Since August, Rupert Murdoch’s Fox Corp., Comcast’s NBCUniversal and Spanish-language broadcaster TelevisaUnivision have all complained that YouTube TV was trying to use its market muscle to squeeze them for concessions.

Here’s a look at what’s driving the escalating tensions:

Google’s growing clout in television

The struggle between Disney and YouTube reflects television’s fast-shifting dynamics.

Disney has long entered carriage negotiations with tremendous leverage, in large part because it owns ESPN, which is a must-have channel for legions of sports fans.

Programmers, including Disney, structured their distribution contracts to expire near a pivotal programming event, such as a new season of NFL football. The timing motivated both sides to quickly reach a deal rather than risk alienating customers.

But for Google’s parent, Alphabet, YouTube TV is just a sliver of their business. The tech company generated $350 billion in revenue last year, the vast majority coming from Google search and advertising. That gives YouTube a longer leash to hold out for contract terms it finds acceptable.

“This dispute is not that painful for Google,” said analyst Richard Greenfield of LightShed Partners, noting that YouTube TV could probably withstand “two weekends without college football, and two weeks without ‘Monday Night Football’ — as long as their consumers stay with them.”

Disney, however, depends on TV advertising and pay-TV distribution fees. The week-long blackout has already dampened TV ratings, which means less revenue for the company.

Consumers like YouTube TV

For decades, throngs of consumers loathed their cable company — a sentiment that Disney and other programmers were able to use in their favor in past battles. Customer defections prompted several pay-TV companies to find a compromise to restore the darkened TV channels and stanch the subscriber bleeding.

But YouTube is banking on a more loyal user base, including millions of customers who switched to the service from higher-priced legacy providers.

“I’ll stick this thing out with YouTube TV,” Newton said, adding that he hoped the dispute didn’t drag on for weeks.

“This is one of the problems facing Disney,” Greenfield said. “It’s been a noticeable change in tone from past carriage fee battles. If customer losses stay at a minimum, then Disney is going to be in a tough place.”

It boils down to power and money

YouTube TV is the fastest-growing television service in the U.S. Analysts expect that, within a couple of years, YouTube TV will have more pay-TV customers than industry leaders Spectrum and Comcast.

In the current negotiations, Google has asked Disney to agree to lower its rates when YouTube TV surpasses Comcast’s and Spectrum’s subscriber counts. Disney maintains that YouTube already pays preferred rates, in recognition of its competitive standing, and that Google is trying to drive down the value of Disney’s networks.

“YouTube TV and its owner, Google … want to use their power and extraordinary resources to eliminate competition and devalue the very content that helped them build their service,” top Disney executives wrote last Friday in an email to their staff.

People close to YouTube TV reject the characterization, saying the service has been a valuable partner by providing a strong service that brings Disney billions of dollars a year in distribution revenue.

“The bottom line is that our channels are extremely valuable, and we can only continue to program them with the sports and entertainment viewers love most if we stand our ground,” the Disney executives wrote in last week’s email. “We are asking nothing more of YouTube TV than what we have gotten from every other distributor — fair rates for our channels.”

Higher sports rights fees

A major reason Disney is asking for higher fees is because it’s grappling with a huge escalation in sports costs.

Disney is on the hook to pay $2.6 billion a year to the NBA, another $2.7 billion annually to the NFL, and $325 million a year for the rights to stream World Wrestling Entertainment. Such sports rights contracts have nearly doubled in the last decade, leading to the strain on TV broadcasters.

In addition, deep-pocketed streaming services, including Amazon, Apple and Netflix, have jumped into sports broadcasting, driving up the cost for the legacy broadcasters.

The crowded field also strains the wallets of sports fans, and appears to be adding to the fatigue over the YouTube TV-Disney fight.

Newton wrote in a recent Twitter post that he was spending $400 a month for his various internet, phone and TV services, including Disney+ and NFL Sunday Ticket, which is distributed by YouTube TV.

“I’m already on all the major subscriptions to watch football these days,” Newton, a third-generation San Francisco 49ers fan, said. “You need Netflix. You need Peacock, you need Amazon Prime and the list goes on and on. I’m at the point where I’m not paying for anything else.”

Millions of YouTube TV subscribers could miss “Monday Night Football” on ESPN and ABC News’ election day coverage as the blackout of Walt Disney-owned channels stretches into a second week.

“Monday Night Football” features the Dallas Cowboys battling the Arizona Cardinals. In addition, several important political contests are on Tuesday ballots, including the New York City mayor’s election, gubernatorial races in Virginia and New Jersey, and California’s Prop. 50 to decide whether officials can redraw the state’s congressional map to favor Democrats.

Disney on Monday sought a temporary thaw in tensions with Google Inc. after the two sides failed last week to strike a new distribution contract covering Disney’s television channels on Google’s YouTube TV.

“Despite the impasse that led to the current blackout, we have asked YouTube TV to restore ABC for Election Day so subscribers have access to the information they rely on,” a Disney spokesperson said in a statement Monday. “We believe in putting the public interest first and hope YouTube TV will take this small step for their customers while we continue to work toward a fair agreement.”

A Google spokesperson was not immediately available for a comment.

ABC’s “World News Tonight With David Muir” is one of television’s highest rated programs.

More than 10 million YouTube TV customers lost access to ESPN, ABC and other Disney channels late Thursday after a collapse in negotiations over distribution fees for Disney channels, causing one of the largest recent blackouts in the television industry.

The two TV giants wrangled for weeks over how much Google must pay to carry Disney’s channels, including FX, Disney Jr. and National Geographic. YouTube TV — now one of the largest pay-TV services in the U.S. — has balked at Disney’s price demands, leading to the outage.

YouTube TV does not have the legal right to distribute Disney’s networks after its last distribution agreement expired.

“We know this is a frustrating and disappointing outcome for our subscribers,” a YouTube spokesperson said in a statement last week. “We continue to urge Disney to work with us constructively to reach a fair agreement that restores their networks to YouTube TV.”

YouTube has said that should the outage stretch for “an extended period,” it would offer its subscribers a $20 credit.

Spanish-language TelevisaUnivision-owned channels were knocked off YouTube TV in a separate dispute that has lasted more than a month. Televisa has appealed to high-level political officials, including President Trump and Federal Communications Commission Chairman Brendan Carr.

Last year, after Disney-owned channels went dark on DirecTV in a separate carriage fee dispute, Disney offered to make available to DirecTV subscribers its ABC coverage of the sole presidential debate between President Trump and then-Vice President Kamala Harris.

DirecTV viewed ABC’s offer as something of a stunt, noting the debate would be streamed. DirecTV countered by asking Disney to instead make all of its channels available.

That fee dispute resulted in a 13-day blackout on DirecTV, one that was resolved a few days later.

Heightened tensions in the television industry have led to numerous blackouts.

In 2023, Disney and Charter Communications were unable to iron out a new contract by their deadline, resulting in a 10-day blackout of Disney channels on Charter’s Spectrum service. A decade earlier, Time Warner Cable subscribers went nearly a month without CBS-owned channels.

Programming companies, including Disney, have asked for higher fees for their channels to help offset the increased cost of sports programming, including NFL and NBA contracts. But pay-TV providers, including YouTube have pushed back, attempting to draw a line to slow their customers’ ever-increasing monthly bills.

More than 40 million pay-TV customer homes have cut the cord over the last decade, according to industry data. Many have switched to smaller streaming packages. YouTube TV also benefited by attracting disaffected customers from DirecTV, Charter Spectrum and Comcast. YouTube TV is now the nation’s third-largest TV channel distributor.

More than 10 million YouTube TV customers lost access to ESPN, ABC and other Walt Disney Co. channels after contract talks broke down Thursday night in one of the largest television blackouts in recent years.

The Disney blackout was set to begin by 9 p.m. Thursday, interrupting “SportsCenter with Scott Van Pelt” on ESPN and “9-1-1: Nashville” and “Grey’s Anatomy” on ABC.

The two TV giants have been wrangling for weeks over carriage fees for Disney’s channels, including FX, Disney Jr. and National Geographic. YouTube TV — now one of the largest pay-TV services in the U.S. — has balked at Disney’s price demands, fueling the dispute that spilled beyond Thursday’s deadline for a new deal.

Without an agreement, Google-owned YouTube TV no longer had legal rights to distribute Disney’s channels.

“We know this is a frustrating and disappointing outcome for our subscribers,” a YouTube spokesperson said in a statement. “We continue to urge Disney to work with us constructively to reach a fair agreement that restores their networks to YouTube TV.”

Should the outage stretch for “an extended period,” YouTube said it would offer subscribers a $20 credit.

The blackout highlights heightened tensions in the television industry.

Programming companies, including Disney, have sought higher fees for their channels to help offset the increased cost of sports programming, including NFL and NBA contracts.

But pay-TV providers such as YouTube have pushed back, attempting to draw a line as customers grow weary of ever-increasing monthly bills.

They don’t want to lose subscribers to a rival service or have them drop their subscriptions. More than 40 million pay-TV customer homes have cut the cord over the last decade, according to industry data.

Disney becomes the latest TV programmer to allege that Google has been throwing its weight around in contract negotiations.

People close to the Burbank entertainment giant accuse YouTube TV of refusing to pay market rates for Disney’s popular channels or accept terms accepted by other pay-TV distributors. Disney has clinched deals with six other pay-TV companies this year, including the nation’s largest channel distributors, Charter Spectrum and Comcast.

“Unfortunately, Google’s YouTube TV has chosen to deny their subscribers the content they value most by refusing to pay fair rates for our channels, including ESPN and ABC,” Disney said in a statement. “Without a new agreement in place, their subscribers will not have access to our programming, which includes the best lineup in live sports – anchored by the NFL, NBA, and college football, with 13 of the top 25 college teams playing this weekend. With a $3 trillion market cap, Google is using its market dominance to eliminate competition and undercut the industry-standard terms we’ve successfully negotiated with every other distributor.”

Since August, Rupert Murdoch’s Fox Corp., Comcast’s NBCUniversal and Spanish-language broadcaster TelevisaUnivision have all complained that YouTube TV was trying to use its clout to squeeze them for concessions now that YouTube TV has become so popular with consumers.

Ultimately, Fox and NBCUniversal negotiated new distribution contracts with Google without having their channels going dark.

Univision wasn’t as fortunate; its channels have been off YouTube TV for nearly a month.

YouTube TV, for its part, has alleged that Disney was the one making unreasonable demands. The San Bruno, Calif.-based platform cited recent agreements it reached with NBCUniversal and Fox..

“Last week Disney used the threat of a blackout on YouTube TV as a negotiating tactic to force deal terms that would raise prices on our customers,” YouTube TV said in a statement. “They’re now following through on that threat. … This decision directly harms our subscribers while benefiting their own live TV products, including Hulu + Live TV and Fubo.”

Both Disney’s Hulu service and Fubo compete with YouTube TV by offering packages of many of the same traditional channels.

YouTube has alleged that Disney is using the blackout to steer disaffected YouTube TV customers to Disney-owned streaming services after the Burbank company lost subscribers who canceled following the late-night comedian Jimmy Kimmel’s brief suspension last month.

The two companies’ fraught dealings extend beyond the negotiations.

Last spring, Disney’s former distribution chief, Justin Connolly, abruptly exited to take a similar position at YouTube TV. Connolly had spent two decades at Disney and ESPN and helped devise the company’s distribution strategy. Disney sued to block the move, but a judge allowed Connolly to take his new position — putting him on the opposite side of the negotiation table.

It’s unclear how long the impasse might last.

A separate distribution fee dispute between Disney and DirecTV last year resulted in a 13-day blackout of Disney channels for customers of the El Segundo-based television provider. In 2023, another ugly tussle led to Disney channels being dropped from Charter’s Spectrum service for 10 days.

News and sports fans might quickly notice the absence of their favorite channels.

They could miss college football on ESPN and ABC as well as a “Monday Night Football” game between the Arizona Cardinals and Dallas Cowboys.

ESPN is scheduled to televise a University of Miami-SMU football game on Saturday.

(Jason Allen / Associated Press)

Disney’s ABC stations, including KABC-TV in Los Angeles, and the network’s affiliate stations around the country also will be unavailable on YouTube TV.

That means viewers could miss local newscasts, “Jeopardy,” “Wheel of Fortune,” “Good Morning America” and “Jimmy Kimmel Live.”

YouTube TV launched in April 2017 for $35 a month. The package of channels now costs $82.99.

YouTube TV dropped Univision’s Spanish-language networks late Tuesday, a contentious turn in a simmering dispute that has already drawn scrutiny from members of Congress.

“Google’s YouTube TV has refused to ‘Do the Right Thing’ and dropped Univision from its platform — stripping millions of Hispanic viewers of the Spanish-language news, sports, and entertainment they rely on every day,” parent company TelevisaUnivision said in a statement, alluding to its campaign slogan.

The outage began about 7 p.m. PDT, shortly before the federal government shutdown — a newsworthy event that Univision journalists have been covering.

The impasse occurred as another deadline loomed in separate contract talks between YouTube TV and NBCUniversal, raising the possibility of a second blackout. Both Univision and NBCUniversal’s distribution agreements were set to expire Tuesday night. But at the deadline, NBCUniversal granted YouTube TV a short-term extension to allow the two sides to continue working on a new deal.

NBCUniversal owns Telemundo, the other major Spanish-language broadcast network.

Prominent members of Congress, including Sen. Ted Cruz (R-Texas), Sen. Bernie Moreno (R-Ohio) and Rep. Mario Diaz-Balart (R-Fla.), have demanded answers from Google executives, including Chief Executive Sundar Pichai.

A major sticking point was YouTube TV’s proposal to shift the Univision network from its basic plan, which is available to all subscribers, and put the channel on a more expensive Spanish-language add-on package.

Univision cried foul, saying the switch would amount to an 18% fee increase for its Spanish-language viewers. The move would also dramatically cut the revenue that Univision receives because YouTube and other distributors pay fees based on the number of subscribers that have access to a channel.

“Google shouldn’t be abusing its monopoly power by forcing millions of Texans & Americans to pay extra for Spanish-language programming,” Cruz said in a message on X. “That’s not right & it’s not fair.”

YouTube is flexing its market muscle. The Google platforms have become the dominant video service in the U.S., according to Nielsen, with YouTube attracting more than 120 million active daily users.

The YouTube TV service has become a major draw with more than 10 million customer homes that receive its traditional TV channel packages that include NBC, ABC, Fox News and Comedy Central.

A YouTube spokesperson downplayed Univision’s departure, saying the Spanish-language company continues to have a massive following on its main YouTube site with more than “160 million subscribers and billions of views across YouTube, where they generate ad revenue from their content.”

However, on the paid service, YouTube TV, the Spanish-language programming “only represents a tiny fraction of overall consumption,” the YouTube spokesperson said.

The blackout comes a month after YouTube avoided a collision with Rupert Murdoch’s Fox Corp. The two companies hammered out a new distribution deal a few days after the August deadline.

NBCUniversal’s talks with Google have also been rocky. The tech behemoth has expressed a desire to fold Peacock programming onto its YouTube TV platform rather than the current stand-alone service. But NBCUniversal has balked because it has spent billions of dollars building Peacock and it wants to remain the conduit for its customers.

YouTube TV launched in April 2017 for $35 a month. The package of channels now costs $82.99.

In a bid for more sports fans, YouTube TV took over the NFL Sunday Ticket premium sports package from DirecTV, which had been losing more than $100 million a year to maintain the NFL service. YouTube TV offers Sunday Ticket as a base plan add-on or as an individual channel on YouTube.

Rent the Runway(RENT 29.56%) reported Q2 2025 results on July 11, 2025, with revenue rose 2.5% year-over-year to $80.9 million and ending active subscribers up 13.4% year-over-year. A transformative recapitalization will reduce debt from over $340 million to approximately $120 million, as announced on Aug. 21, 2025, strong acceleration in inventory investment, and substantial gains in customer engagement metrics. Below, key insights unpack the earnings call’s implications for long-term investors.

Rent the Runway slashes debt in recapitalization

The balance sheet overhaul, announced Aug. 21, 2025, involves Aranda Principal Strategies, Story 3 Capital Partners, and Nexus Capital Management as stakeholders, combining debt conversion to equity, new capital injection, and extension of maturity to 2029. This move follows years of capital structure constraints that limited strategic flexibility post-COVID.

“Our long-time existing lender, Aranda Principal Strategies, or APS, is partnering with two highly respected private equity firms with deep experience in the consumer retail space: Story 3 Capital Partners and Nexus Capital Management on a plan that will reduce our total debt from over $340 million to approximately $120 million. APS will convert a substantial portion of its original debt into common equity ownership, and APS, Story 3, and Nexus will contribute new capital to further support the business and its growth initiatives. The maturity on the debt will also be extended to 2029, giving us years of additional runway.”
— Jennifer Y. Hyman, CEO

The recapitalization plan marks a significant step forward and positions the company for greater financial flexibility and a stronger balance sheet.

Active subscriber growth accelerates as inventory doubles

Ending active subscribers jumped to 146,373, up from negative growth (-4.9% year-over-year in Q4 2024), and coincided with a near doubling of inventory units and a 235%-323% year-over-year increase in monthly posted styles for May, June, and July. Related engagement metrics, including share of views (up 84% year-over-year) and Net Promoter Score (up 77% versus the prior year), reached three-year highs amid ongoing investments in assortment breadth and exclusives.

“Subscriber growth continued. We ended Q2 with 146,400 active subscribers, a 13.4% year-over-year increase, accelerating from negative 4.9% in Q4 2024 and 0.9% in Q1 2025. Q2 2025 year-over-year acquisition growth accelerated, as compared to Q1 2025 and Q4 2024. Retention continued to be higher than the prior year. These results show that we’re adding more subscribers in a significant way and subscribers are more likely to stay with the service for longer periods of time.”
— Jennifer Y. Hyman, CEO

Subscriber and engagement momentum highlight the leverage and resonance of the revamped inventory strategy, though Increased fulfillment and revenue share costs pressured margins.

Gross margin and free cash flow deteriorate as inventory investment surges

Gross margin fell to 30%, down from 41.1% a year earlier as revenue share and fulfillment costs rose, while free cash flow was negative $20.5 million, compared to negative $4.5 million a year ago, reflecting heavier upfront investment in rental products. Adjusted EBITDA margin dropped to 4.4%, down from 17.4% a year earlier.

” Adjusted EBITDA for Q2 ’25 was $3.6 million or 4.4% of revenue versus $13.7 million or 17.4% of revenue in Q2 2024. The decrease in adjusted EBITDA versus the prior year is primarily a result of higher revenue share expenses. Free cash flow for Q2 ’25 was negative $20.5 million versus negative $4.5 million in Q2 2024. Free cash flow decreased versus the prior year primarily due to lower adjusted EBITDA and higher purchases of rental products on account of our inventory strategy for fiscal year 2025.”
— Siddharth B. Thacker, CFO

Heavier investment in inventory and platform upgrades signals management’s commitment to long-term scale but underscores the importance of successfully converting subscriber growth to operating leverage and cash flow improvement.

Looking Ahead

Management expects revenue of $82 million to $84 million for the next quarter and continues to project double-digit growth in ending active subscribers for the full year. Full-year free cash flow guidance is revised lower to below negative $40 million due to recapitalization costs. No additional quantitative outlook or strategic milestones beyond 2025 were provided in the call.

About 10 million YouTube TV subscribers could lose access to Fox News and Fox Corp. channels that broadcast sports in a fee dispute that comes just days before the start of college football.

The Google-owned television service notified customers that Fox-owned channels, including Fox Business and local stations such as KTTV Channel 11 in Los Angeles, may be dropped from their program line-ups as soon as Wednesday afternoon if the two sides fail to reach a new distribution pact.

YouTube TV viewers would be without “The Five” and other Fox News programs. Sports fans could miss out on Friday night’s Auburn-Baylor football game and Saturday’s high-profile contest between Texas and Ohio State, along with three regional Major League Baseball games.

A prolonged blackout could interrupt the start of Fox’s NFL season that begins on Sept. 7.

“Fox is asking for payments that are far higher than what partners with comparable content offerings receive,” YouTube said late Monday in a blog post. “Our priority is to reach a deal that reflects the value of their content and is fair for both sides without passing on additional costs to our subscribers.”

The dust-up comes as YouTube TV has become one of the most formidable television providers.

Earlier this year, Nielsen ranked YouTube, including its video service, as the largest television distributor in the U.S. by share of viewership. YouTube’s popular bundle — it also offers the NFL Sunday Ticket package of out-of-market games — has dramatically cut into the business of legacy pay-TV providers, including Charter Spectrum, DirecTV and Dish Networks.

“While Fox remains committed to reaching a fair agreement with Google’s YouTube TV, we are disappointed that Google continually exploits its outsized influence by proposing terms that are out of step with the marketplace,” Fox said in a statement, adding the dispute could force its channels to go dark “unless Google engages in a meaningful way soon.”

Last year, YouTube generated $54.2 billion in revenue, second only to the Walt Disney Co., according to the MoffettNathanson research firm. The analysts estimated that fast-growing YouTube TV would reach 10 million subscribers this year. That slightly trails Charter, which operates the Spectrum service, and Comcast. YouTube TV has eclipsed the once powerhouse satellite TV service providers.

Disputes between programmers and pay-TV providers have become increasingly common in recent years amid a weakening of television economics. The high cost of sports rights has become a major rub for pay-TV distributors who have been asked to pay higher fees to mitigate the loss of subscribers.

Last year, DirecTV customers lost access to Walt Disney Co. channels, including ESPN, for nearly two weeks.

The battle was costly. DirecTV acknowledged that thousands of subscribers fled — many to YouTube TV — during the blackout. Viewers who wanted to watch the U.S. Open tennis tournament, college football, “Jeopardy!” and “Wheel of Fortune” were upset by the outage.

In 2023, a separate dispute led to Disney channels going dark on Spectrum.

YouTube said Monday that it was “working diligently with the team at Fox to reach an agreement.”

Should the channels go dark, the company will provide customers with a $10 credit. YouTube said customers could also sign up for Rupert Murdoch’s television company’s new streaming service, Fox One, which costs $20 a month.

Walt Disney Co. is expected to announce that the NFL is taking an equity stake in the Burbank-based entertainment giant’s sports media property ESPN, according to people familiar with the plan who were not authorized to comment publicly.

Disney may reveal the deal during its earnings call Wednesday. Representatives at the NFL and ESPN declined comment Friday.

In return for the equity stake, ESPN is expected, at minimum, to take over the NFL’s cable properties including the NFL Network and Red Zone, the popular channel that continuously updates fans on the slate of Sunday contests. The NFL Network also has the rights to several regular season games late in the season.

In addition, the NFL owns the league’s production unit, NFL Films, and NFL+, the streaming service that enables subscribers to watch games and other related content on mobile devices.

ESPN has the broadcast rights to “Monday Night Football” and two Super Bowl games in the current NFL contract that runs through 2033 but is expected to be reopened in 2029. The impending deal with Disney means the NFL’s other partners — Fox, NBC, CBS, YouTube and Amazon — will be bidding against an entity that the league has a financial interest in next time the media rights come up.

Discussions between the NFL and Disney have been ongoing for more than 18 months as concerns heightened about the viability of ESPN when consumers continue to bypass or cancel pay TV subscriptions.

The NFL accounts for the vast majority of most-watched programming on U.S. television screens every year, according to Nielsen. But as the TV business has been fragmented and disrupted by streaming, there are even more competitors wanting their own package of pro football games.

In 2022, the NFL awarded the rights to its Sunday Ticket package to Google’s YouTube TV. The seven-year deal for the package, which gives viewers access to out-of-market network TV broadcasts of the league’s Sunday afternoon games, underscored the migration of younger viewers to streaming platforms for video viewing.

Netflix, the world’s largest subscriber-based online video service, has the rights to Christmas Day games, which last year drew tens of million of viewers to the streamer, which has been building up its live programming business.

ESPN has long been the most expensive part of the pay TV bundle, currently getting close to $9 per subscriber. It is now in around 73 million homes, down from 98.5 million in 2013.

Traditional television is losing ground to streaming. Earlier this year, Nielsen reported that TV consumption through streaming services had exceeded broadcast and cable viewing combined for the first time.

ESPN is adapting to the streaming landscape, launching its first stand-alone direct-to-consumer product that will give consumers access to all of its channels without a pay TV subscription. The service will cost $29.99 a month.

TV ratings for ESPN have improved and ad sales have remained strong as advertisers value audiences who watch live programming.

Disney’s stock price fell about 2% to $116.59 on Friday as the broader markets absorbed the pain of President Trump’s new tariffs and weak jobs data.

ESPN is run by Jimmy Pitaro, who has been considered a potential internal candidate to replace Disney Chief Executive Bob Iger when he retires at the end of next year. Disney’s share price has risen 5% so far this year.

Who says you can’t go Home Box Office again?

Warner Bros. Discovery renamed its streaming service HBO Max on Wednesday, formally reversing its decision from two years ago to dump the prestigious HBO brand in a bid to make the service more appealing to a mainstream, meat-and-potatoes crowd.

The gambit to chase Netflix with a service called Max didn’t work. Warner Bros. Discovery’s leaders eventually recognized the tremendous value in the HBO name, and sheepishly brought it back for an encore.

The company announced the switch in May.

“The good news is I have a drawer full of stationary from the last time around,” HBO Chairman Casey Bloys said in May, making light of Warner Bros. Discovery’s about-face during the company’s annual programming upfront presentation to advertisers at Madison Square Garden in New York.

The move marks the fifth name for the service in 15 years.

HBO’s first digital offering, introduced in 2010, was called HBO Go. Eventually the company added an HBO Now app. Then, in 2020, when the company launched its comprehensive streaming service with Warner Bros. movies and television shows, executives decided the HBO Max name would play to the company’s strengths while beckoning customers with a souped-up product and moniker to match.

That lasted until Chief Executive David Zaslav stepped in. The company truncated the name to Max because Zaslav and other executives felt the need to create some distance from HBO’s signature shows to make room for the nonscripted fare of Discovery’s channels, including HGTV and Food Network.

Now it’s back to HBO Max.

The company has said the shift was a response to audiences’ desire for quality over quantity.

“No consumer today is saying they want more content, but most consumers are saying they want better content,” the company said in May.

The change also represents a recognition that Warner Bros. Discovery, a medium-sized media company with a huge debt burden, couldn’t compete with Netflix, which tries to offer something for everyone.

And while some of the Max-branded shows, including “The Pitt,” are critically acclaimed, it was the HBO fare, including “The White Lotus,” that has been the most consistent draw for subscribers.

HBO built its legacy as a premium cable channel that required an additional fee on the monthly cable bill. Such groundbreaking series as “The Sopranos,” “Game of Thrones” and “Sex and the City” put the channel at the vanguard of prestige programming.

Most subscribers who currently have Max won’t need to download a new app, company insiders said.

An app update will eventually change the blue Max logo to a black HBO Max one.

Staff writer Stephen Battaglio contributed to this report.

Walt Disney Co. has secured the exclusive streaming rights to the children’s TV series “CoComelon,” according to people familiar with the matter, taking one of the most popular kids’ programs in the world away from Netflix.

Starting in 2027, Disney+ will have every season of “CoComelon,” a compilation of nursery rhymes for toddlers, according to the sources, who asked not to be identified discussing a deal that hasn’t been announced. The Burbank-based movie, TV and theme-park company will pay tens of millions of dollars annually for the rights, one person said.

“CoComelon” has been one of the most-popular kids’ programs in the world for almost a decade. Its flagship YouTube channel has 193 million subscribers and averages more than 2 billion views a month, according to Social Blade. It was the second-most-watched program on Netflix in 2024, trailing only the “Bridgerton” shows.

The series adds to an already strong lineup of kids’ programming on Disney+, which is home to the most-watched preschool show on streaming, “Bluey,” as well as classic Disney films and TV shows. Disney had three of the most-watched preschool shows in the U.S. in the first quarter of this year with “Bluey,” “Spidey and his Amazing Friends” and “Mickey Mouse Clubhouse.”

Former advertising executive Jay Jeon created the YouTube channel in 2006 to entertain his child and sold it to U.K.-based Moonbug Entertainment in 2020. Moonbug was later acquired by Candle Media, an independent media firm led by former Disney executives Kevin Mayer and Tom Staggs. Moonbug, which declined to comment, will continue to post videos of “CoComelon” on YouTube while Disney+ will be the exclusive paid streaming home.

The popularity of “CoComelon” on Netflix has waned over the last 12 to 18 months. While the show was the fifth most-watched program in all of streaming in 2023, it didn’t appear in the top 10 last year. Viewership has declined by almost 60% over the last couple of years. Netflix will continue to be the home of “CoComelon Lane,” an original series, as well as “Blippi,” another property owned by Moonbug.

Disney has been the biggest brand in kids’ entertainment for a century, producing beloved characters such as Mickey Mouse and the Little Mermaid. But many of the most popular new properties for kids began outside of Hollywood. Bluey, for example, is from the Australian Broadcasting Corp. and BBC Studios.

Disney is placing renewed emphasis on kids’ programming as it competes with Netflix and YouTube, which is the most popular video service in the world, especially with viewers under age 30. Disney+ had 126 million subscribers at the end of March, up 1.4 million from the three previous three months.

In addition to “CoComelon,” Disney is licensing several seasons of “Little Angel” and a couple seasons of “JJ’s Animal Time,” two other Moonbug shows. “Little Angel” will remain available on YouTube, Netflix and Amazon.

Streaming services that once focused primarily on signing up new customers are increasingly occupied with keeping customers for as long as possible. The longer that subscribers stay with a service, the less likely they are to cancel and the more valuable they are to advertisers. Kids’ programming drives a lot of engagement for streaming services. It accounts for about 15% of all viewing on Netflix, the company said last week. Netflix closed 2024 with more than 300 million paid subscribers.

On May 19 the company announced an agreement to begin carrying new and old episodes of the children’s classic “Sesame Street” and also has the hit kids’ show “Gabby’s Dollhouse.”

“CoComelon” will arrive on Disney+ the same year that a movie based on the property will be released in theaters by Universal Pictures.

Shaw writes for Bloomberg.