Disney’s plan to offer Super Bowl LXI across several networks and streaming platforms could give fans more ways to watch the game. But the expanded coverage has reportedly angered some ABC affiliates, who fear losing viewers and advertising revenue during one of America’s biggest events.
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According to CNBC’s Alex Sherman, ABC broadcast affiliates are “steaming” over Disney’s distribution plans. One station group CEO estimated that the strategy could cut advertising revenue tied to broadcast viewership by as much as 35% compared with last year.
The concern is that viewers who would normally watch the game on ABC could switch to another version of the broadcast. That could shrink local stations’ audiences and make their advertising slots less valuable.
“Any time you fragment distribution, you’re destroying value for each of the individual platforms,” an unnamed station group CEO told Sherman. “I don’t have a problem with what Disney is doing — I have a problem that there’s no acknowledgement that we’re losing money.”
The dispute comes as ABC prepares to air the Super Bowl for the first time since 2006. Disney regained a place in the NFL’s Super Bowl rotation through its 2021 media rights agreement. ESPN will produce the main broadcast, featuring its Monday Night Football announcing team of Joe Buck and Troy Aikman.
However, the coverage will extend well beyond the main telecast. ESPN2 will carry the ManningCast with Peyton and Eli Manning, while ESPNU will feature Super Bowl LXI Field Pass with The Pat McAfee Show. Meanwhile, NFL Network will offer Super Bowl LXI Playbook with Next Gen Stats.
Disney is also planning a Star Wars-themed alternative broadcast for Disney Channel and Disney XD, with the option available on Disney+. Additionally, a Spanish-language coverage will be available through ESPN Deportes and Disney+.
The Super Bowl brings in valuable ad money for local stations. They can sell commercial time to businesses in their own markets, even though many of the game’s ads are sold nationally. If fewer people watch ABC, those local spots may become less valuable, and stations in major markets could lose millions in ad revenue.
The issue is being discussed by the ABC Television Affiliates Association Board of Governors, which represents affiliates in their dealings with the network. It also remains unclear whether Disney will compensate stations for any potential losses.
Disney has defended its approach by pointing to previous Super Bowl distribution arrangements involving Peacock and Tubi. The company argues that offering major sporting events across broadcast and streaming platforms is not a new practice.
“Our ABC affiliates are important partners and we always take that into careful consideration when making these decisions,” a Disney spokesperson told CNBC. “We’ve successfully navigated similar situations in collaboration with the governing board many times before, and this is no different.”
For now, it is unclear whether Disney and the affiliates will settle their differences before kickoff. The dispute comes as viewers have more ways to watch live sports, leaving broadcasters to figure out how to grow their streaming reach without hurting their traditional business.