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Jimmy Kimmel's return dials up the heat of Disney's fight with local broadcasters

1. Disney reinstated Jimmy Kimmel after backlash, but local broadcasters won't air it. 2. Sinclair and Nexstar, owning a third of ABC affiliates, set to prioritize local news. 3. The conflict may cause audience shrinkage and lower ad revenues for ABC. 4. Consolidation has strengthened Sinclair and Nexstar's negotiating power against Disney. 5. Local broadcasters risk losing viewers to streaming if they boycott Kimmel's show.

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FAQ

Why Bearish?

The conflict with local broadcasters could decrease ABC's advertising revenues, impacting DIS negatively. A historical example is the fallout from declining audience metrics affecting broadcaster revenues.

How important is it?

The article reflects significant ongoing tensions impacting advertising potential for ABC, which could directly affect DIS's stock price due to its reliance on TV revenues.

Why Short Term?

The immediate market reaction is likely as advertisers reassess ABC's value with declining viewership. Rapid changes in viewership trends can lead to short-term financial recalibrations.

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