The decision is a direction reaction to a New York Times investigation which uncovered a series of alleged sexual harassment or inappropriate behavior from the show's host, Bill O'Reilly.
The New York Times noted that O'Reilly and/or Fox paid $13 million in settlements with five women in exchange for them not pursuing litigation or discussing their accusations against the host.
Nevertheless, advertisers including Mercedes-Benz, Hyundai, BMW of North America, Constant Contact and Ainsworth Pet Nutrition have already pulled ads. But it is possible that other brands will follow suit and have a similar domino effect as was seen in YouTube's ad scandal.
Investors Have Reason To Be Concerned
Investors have reason to be concerned since "The O'Reilly Factor" is not only Fox News' most popular show, it is the most popular show among all cable news networks. As such, shares of Twenty-First Century Fox were lower by more than 1.50 percent on Tuesday.
CNN further noted that "The O'Reilly Factor" generated $446 million in total ad revenue from 2014 through 2016.
It is also important to consider that the loss of ad revenue for Fox could be much worse than what YouTube stands to lose. For instance, even if YouTube sees 250 advertisers boycotting the platform it will result in a $750 million revenue shortfall, the impact to Google's top-line represents a mere 1.07 percent dip.
Related Links:
Advertising Community Says Google's YouTube Ad Scandal 'A Real Issue'
YouTube's Ad Controversy Not Going Away Yet; Will It Prove To Be Temporary? __________ Image Credit: Bill O'Reilly interviews former President George W. Bush, November 2010, By U.S. Air Force photo [Public domain], via Wikimedia Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
