While “Jimmy Kimmel Live!” has returned to ABC a week after Disney pulled it from the air, some broadcasters still refuse to air the late-night show.
Nexstar and Sinclair, which own more than 70 ABC affiliates throughout the U.S., began preempting the show after Kimmel made remarks about the assassination of conservative commentator Charlie Kirk.
Nexstar’s decision comes amid plans to acquire rival broadcaster Tegna in a $6.2 billion deal that would require approval from the Federal Communications Commission. Brendan Carr, the head of the FCC, has criticized Kimmel and suggested the agency could revoke the licenses of local stations who broadcast the show.
Politicians, celebrities and viewers at home have criticized Kimmel’s suspension, calling it a violation of free speech.
Some Disney shareholders want to know why Disney suspended Kimmel and are asking for documents related to the decision, along with any materials on how his removal has affected Disney’s revenue. Disney’s market cap plummeted by $6.4 billion between last Thursday and this Monday.
Consumers have voted with their dollars by cancelling their Hulu and Disney+ subscriptions in droves.
They’re also boycotting Nexstar and Sinclair by hitting them where it hurts: their ad dollars. On Reddit, consumers are keeping track of the companies that are advertising with their affiliates, and telling them that they will no longer do business there.
Those efforts are already having an impact on some companies.
The performing arts nonprofit Seattle Theatre Group has postponed future advertising with the Sinclair-owned station KOMO, which is based in Washington, although it currently does not have any ads running on the station.
“In response to both ABC and Sinclair’s actions to limit free speech, which we do not agree with, we paused all future campaigns that we have scheduled with KOMO,” an STG spokesperson told Marketplace over email.
The STG spokesperson said that the organization “received many emails and notes from patrons and concerned individuals” from the greater Puget Sound region in Washington.
“Our decision to pause our future ads is both in response to that outreach and our own concerns with ABC and Sinclair,” the spokesperson said.
Another Washington-based company, Best Plumbing, issued a statement on its website in support of free speech after consumers began writing letters to them.
“Freedom of expression isn’t left or right. It’s not a partisan issue. People across the spectrum agree that silencing voices sets a dangerous precedent for all of us,” the statement said.
The company also wrote, “We will review pending contracts and upcoming campaigns to ensure our advertising continues to align with both our business goals and the values of transparency and fairness our customers expect.”
Marketplace reached out to Nexstar and Sinclair for comment, but did not receive a response by publication time.
Broadcasters face increasing competition from streaming services, and this decision isn’t helping.
“We are in an era of cord-cutting, where consumers are already turning away from local television. Broadcast stations simply don’t have the same captive audiences they once did. For affiliates, that makes reputational missteps riskier — they can’t afford to give viewers or advertisers another reason to disengage when both groups are already drifting away,” said Stacy Jones, CEO of the marketing agency Hollywood Branded.
Media buyers, or the ones who buy ad space, take note when consumer boycotts target advertisers.
“Media buyers flag the stations, track coverage, and weigh whether a controversy could stick. Even if dollars don’t pull right away, you’ll see brands get cautious with renewals or shift toward safer placements,” Jones said.
Nexstar and Sinclair own more than a fifth of ABC affiliates in the country, which means it will be tough for some advertisers to completely withdraw their ads from these stations. But you might see them trying to be more strategic about their ad placements, Jones said.
“Pulling out entirely isn’t practical. What’s more common is selective buying: advertisers keep the reach but sidestep the shows or slots drawing heat,” Jones said.
Some companies could use a “wait and see” approach by pausing their ads and then allowing them to continue if the backlash subsides, Jones added.
“That unpredictability disrupts affiliate revenue forecasts. And even if affiliates hold onto most advertisers, perception of risk weakens their pricing power. Media buyers use that leverage to push for rate cuts or added value, which erodes long-term profitability,” Jones said.
Boycotts have faced very mixed success, because those on the opposing side could organize a “buycott” to support the companies that are facing backlash, said Mitchell Lovett, a marketing professor at the University of Rochester’s Simon Business School.
But in a sense, Sinclair and Nexstar were actually the ones boycotting first by choosing to preempt Kimmel, said Lovett.
We’re seeing the effects of the “buycott” right now: Kimmel’s returning monologue has already hit more than 20 million views on YouTube.
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