ABC Affiliates Challenge Disney's Super Bowl LXI Broadcast Plan

Disney's plan to distribute Super Bowl LXI across multiple television networks and streaming platforms has sparked opposition from ABC broadcast affiliates, who fear the expanded coverage could reduce advertising revenue. The proposal includes ABC, ESPN, ESPN2, ESPNU, NFL Network, Disney Channel, Disney+, and Disney XD, according to CNBC's Alex Sherman.

Sherman reported that the distribution strategy could reduce advertising revenue associated with broadcast viewership by up to 35% compared with the previous year. ABC affiliates are concerned that audiences could shift from the primary broadcast to alternative channels and platforms, weakening the financial value of their local television operations.

An unnamed station group CEO told Sherman that the issue was not the decision to expand distribution but the financial consequences for individual outlets.

"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 is being discussed by the ABC Television Affiliates Association Board of Governors, which serves as a liaison between ABC and its affiliated stations. The board's chairman declined to comment to Sherman on the matter.

Disney defended its approach by emphasizing its relationship with the affiliates and its experience resolving similar disagreements through established discussions with the governing board.

"Our ABC affiliates are important partners and we always take that into careful consideration when making these decisions," a Disney spokesperson told Sherman.

The company also pointed to previous cooperation with the board as evidence that the current disagreement could be addressed through existing channels.

"We've successfully navigated similar situations in collaboration with the governing board many times before, and this is no different," a Disney spokesperson told Sherman.

The expanded distribution plan also raises questions about how viewers will watch the championship game. Super Bowl broadcasts typically attract group audiences, a viewing pattern that can make alternative presentations less practical for people watching together.

That communal viewing environment could limit the number of viewers who choose channels other than the main broadcast, although the potential financial impact on ABC affiliates remains a central concern in the ongoing discussions.