Are Disney and the Oscars Breaking Up?
For almost 50 years, ABC has broadcast the Oscars, bringing Hollywood’s biggest night to nationwide audiences.
According to a new report from Bloomberg, however, that could soon change.
Even amid the glow of what has been universally recognized as a successful Oscars presentation (Hulu technical difficulties notwithstanding), Disney and the Academy of Motion Pictures Arts and Sciences continue to be far apart on a new broadcasting deal for the Oscars.
Photo: The Academy Awards
Per the Bloomberg report, Disney and the Academy began negotiating a new television deal last year. The current contract runs through at least 2028 and is worth more than $100 million a year.
By the sound of things, Disney does not believe that the price tag should increase, while the Academy does. As the exclusive negotiating window between the two parties has lapsed, the Academy could now look for a new broadcasting partner — specifically Netflix.
What Are the Oscars Worth to Disney?
The big question for Disney is what the Oscars are worth. On one hand, ratings for Hollywood’s premiere awards show are roughly half of what they were a decade ago.
Photo: Mike Coppola/Getty Images
As linear television continues to decline, it remains to be seen whether big-budget presentations like the Oscars will provide the same kind of bang for the buck that they traditionally have. For Disney, the juice simply may not be worth the squeeze.
On the other hand, ABC has clearly made a concerted effort to acquire more premiere television events. Just last year, they agreed to pay more than $70 million a year for the Grammys. That deal was higher than what CBS was previously paying.
Photo: CBS
Even as we enter the age of streaming, content is king. The Oscars, then, will clearly have value. Looking at this year’s Grammys presentation, Disney was able to completely sell out its advertising inventory for the awards.
A Situation Worth Watching
Outside of NFL football, the Oscars remain the most-viewed television event. It is hard to imagine a scenario in which Disney lets the Academy go to a rival.
Photo: Deadline
In the end, Disney and the Academy will likely reach a new agreement. For now, however, it is a situation worth watching.
