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Trump's threats against late-night TV could spell more trouble for advertisers

1. Late-night shows face cancellations, impacting ad revenues for networks like Disney. 2. Jimmy Kimmel's temporary suspension drew high ratings upon return, raising advertiser interest. 3. Viewership trends favor live content, but traditional late-night ratings are declining. 4. Advertisers are reducing spending amidst economic challenges, affecting network revenues. 5. Disney's ABC faces scrutiny and uncertainty due to political and economic pressures.

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FAQ

Why Bearish?

The decline in viewership and ad spending reflects challenges for Disney's ad revenues, particularly with programming costs rising and profitability shrinking. Historical examples show similar trends, such as CBS's drop in ad revenue following late-night show cancellations, suggesting a potential negative impact on Disney's financial performance.

How important is it?

The article's focus on late-night programming directly influences Disney's ABC network, and its advertising relevance. The issues discussed are pertinent to investor concerns about Disney's revenue generation from traditional media amidst shifting consumption patterns.

Why Long Term?

The trends affecting late-night programming and ad revenues are likely a long-term shift due to changing consumer habits and economic pressures. This mirrors past experiences where shifts in television consumption fundamentally changed advertisers’ strategies over several years.

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