ABC affiliates are protesting Disney's decision to distribute the Super Bowl across multiple platforms, including Disney+, citing a potential 35% decline in local advertising revenue. The dispute highlights the ongoing tension between network owners and local stations regarding the erosion of broadcast exclusivity and the impact of multiplatform streaming strategies on local ad sales.
This conflict highlights the accelerating erosion of the traditional broadcast model as network owners prioritize total reach over affiliate protection. By bypassing geofenced ad insertion on Disney+, Disney is effectively decoupling the Super Bowl from the local broadcast ecosystem, which typically accounts for 3% of an affiliate's annual revenue. This move forces a re-evaluation of reverse retransmission fees, as stations are now paying billions for rights that no longer guarantee exclusive local access. Watch for the affiliate board's negotiation results, as any compensation package will set a precedent for how legacy networks appease local partners while pursuing aggressive multiplatform streaming growth.
The ABC affiliates revenue drop underscores the tension between local station owners and national networks as Disney continues its Disney cable channel closures to focus on digital distribution.
ABC affiliates are protesting Disney’s decision to simulcast the Super Bowl across multiple platforms, including Disney+ and ESPN2. Station owners warn this strategy fragments audiences and eliminates local broadcast exclusivity, potentially causing a 35% drop in advertising revenue. This conflict underscores the growing tension between legacy broadcast models and network-led streaming expansion.
Affiliates fear that simulcasting the Super Bowl across six platforms will fragment the audience and cause a 35% decline in local advertising revenue.
The event is planned for broadcast on ABC, Disney+, ESPN2, ESPNU, and NFL Network, with a special Star Wars-themed broadcast on Disney Channel.
Disney+ currently lacks dynamic advertising insertion (DAI) technology, which prevents local stations from geofencing and selling their own spots to streaming viewers.
The Super Bowl typically accounts for 3% of an affiliate's annual revenue, and the loss of exclusive local access forces a re-evaluation of reverse retransmission fees.
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