• Disney’s higher rate has pushed some advertisers to the sidelines, according to a Variety report.
• Nevertheless, ad slots are expected to be sold out ahead of the game next year.
• Super Bowl ads generate more than $800 million in revenue for a broadcaster on average.

Media conglomerate Disney (DIS) is reportedly asking companies to cough up $10 million for a 30-second advertising slot for next year’s Super Bowl game, higher than what predecessors have charged, according to a news report late on Thursday.

The Variety report, citing four sources, said some marketers have moved to the sidelines after Disney informed advertisers of its ad rates for the Super Bowl LXI telecast.

DIS stock has gained 5% over the last 30 days, mirroring the benchmark S&P 500’s performance.

Super Bowl = Eyeballs

Ad slots for Super Bowl games usually sell out fast as they yield some of the highest viewership across TV and streaming platforms. Nielsen data suggested that about 125M viewers tuned in to the game this year.

Based on Super Bowl trends, Disney is widely expected to sell out before the game, as new advertisers are more than willing to spend on ad views during the most effective TV marketing event of the year. Historically, the event struggled to sell ads only in its early days, when the game had not yet gained such clout.

Notably, recent games have seen a shift in advertiser mix. This year’s game saw a spike in ads for AI products and weight-loss treatments, besides the usual food and beverage advertising. 

Disney's pricing push builds on momentum from prior broadcasters like Fox Corporation and Comcast, whose Super Bowl telecasts each generated more than $800 million in ad revenue. Those networks charged an average of around $8 million per 30-second slot.

DIS Stock: Retail Remains Bearish

On Stocktwits, retail sentiment remained ‘bearish’ amid low messaging volume over the last 24 hours.

Wall Street is largely bullish with over 27 out of 31 analysts covering the stock rating it ‘buy’ or higher. Three rate DIS a ‘hold’ and one ‘sell.’

DIS stock is down 8.8% so far this year.

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