ABC affiliates push back as Disney spreads Super Bowl across platforms
Disney's decision to air the Super Bowl across ABC, ESPN, Disney+ and other platforms has ABC affiliates warning of a steep drop in local advertising revenue.
At a glance
- Disney will air the upcoming Super Bowl on ABC, ESPN, Disney+, ESPN2, ESPNU and NFL Network, diluting the broadcast audience.
- An unnamed station group CEO estimates local ad revenue tied to the game could fall up to 35% versus last year.
- ABC affiliates say Disney+ lacks the dynamic ad insertion that lets local stations sell commercials to streaming viewers.
Disney's plan to spread the upcoming Super Bowl across ABC, ESPN, Disney+, ESPN2, ESPNU and NFL Network has frustrated the ABC affiliate stations that carry the network, with one station group CEO estimating that advertising revenue tied to broadcast viewership could fall by up to 35% compared with last year.
The executive, who asked not to be named because the data is private, said the aggregate of the different platforms dilutes the broadcast audience. Disney owns ABC and holds the broadcast rights to this season's Super Bowl. ABC has not carried the game since 2006; Disney returned to the NFL's Super Bowl rotation with its most recent media rights deal in 2021.
Why affiliates care
The Super Bowl is a major moneymaker for ABC stations. Some are owned by Disney, but most belong to local station groups such as Sinclair, Nexstar and Tegna. About 3% of a typical local affiliate's annual advertising revenue comes from the Super Bowl when it airs on the station, according to a person familiar with the matter. Big-market owned-and-operated stations typically take in about $10 million in Super Bowl advertising revenue, a source familiar said.
Fox said last year that Super Bowl ads generated more than $800 million in gross revenue across all platforms. A standard game has about 85 30-second spots; at an average of $8 million each, that is $680 million. Super Bowl LX, held in February, drew 125.6 million viewers.
Local affiliates pay network owners — Disney for ABC, Comcast for NBC, Fox for Fox and Skydance for CBS — a reverse retransmission fee for the right to carry network programming. For decades the Super Bowl was exclusive to broadcast TV, and access to the game was a big part of that fee.
Streaming and alt-casts
Disney is also putting the game on Disney+, which does not typically air live ABC sports programming and lacks the geofenced dynamic advertising insertion that Peacock, Tubi and Paramount+ have used to let local affiliates sell commercials to streaming audiences. The game is an ESPN production with ESPN's "Monday Night Football" crew of Joe Buck and Troy Aikman.
Alt-casts include ESPN2's ManningCast with Eli and Peyton Manning, ESPNU's "Super Bowl LXI Field Pass with The Pat McAfee Show," NFL Network's "Super Bowl LXI Playbook with Next Gen Stats," and a "Star Wars"-themed broadcast on Disney Channel, Disney XD and Disney+. National commercials will be the same across platforms, a Disney spokesperson said, and the "Star Wars" alt-cast will be ad-free.
"The Super Bowl is the year's most-watched telecast, and our broad distribution across ESPN, ABC, and Disney+ will give fans everywhere more ways than ever to enjoy the game," a Disney spokesperson said, adding that streaming marquee events is a well-established industry practice.
The issue is being discussed at the affiliate board, an elected body that liaises between local stations and their parent network. It is unclear how affiliates may be compensated, if at all. The chairman of the ABC Television Affiliates Association Board of Governors declined to comment.
Source: CNBC.
Questions and answers
- Why are ABC affiliates upset about Disney's Super Bowl plan?
- Disney is airing the game on many platforms beyond ABC and ESPN, which affiliates say fragments the broadcast audience and could cut their advertising revenue by up to 35%.
- Has ABC aired the Super Bowl recently?
- No. ABC has not carried the Super Bowl since 2006; Disney rejoined the NFL's Super Bowl rotation with its most recent media rights deal in 2021.
- Will the Super Bowl air on Disney+?
- Yes. Disney is streaming the game on Disney+, which does not have the dynamic ad insertion that Peacock, Tubi and Paramount+ have used for local ad sales.
