ABC Faces Major Losses Over 'The Bachelorette' Cancellation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Should l Buy DIS?
Source: seekingalpha
- Cancellation Impact: ABC's abrupt cancellation of 'The Bachelorette' due to a controversial video featuring star Taylor Frankie Paul could lead to tens of millions in losses, including unscripted TV license fees from Warner Bros. and marketing expenses, directly affecting its financial performance.
- Market Uncertainty: While ABC has scrubbed the show from its website, it remains visible on Citytv+, indicating that the distribution status in international markets is unclear, potentially impacting Warner Bros.' revenue streams.
- Warner Bros. Strategy: Warner Bros. executives are taking a wait-and-see approach while maintaining contact with ABC, as the studio receives the show's license fee regardless of whether it airs, reflecting a cautious stance on future earnings.
- Brand Image Damage: The cancellation not only affects ABC's short-term revenue but could also cause long-term damage to its brand image, especially as audience sensitivity to program content continues to rise.
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Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 96.560
Low
123.00
Averages
137.29
High
152.00
Current: 96.560
Low
123.00
Averages
137.29
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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