Walt Disney Co. (NYSE: DIS) has become the latest major firm to cut advertising spending on Facebook Inc (NASDAQ: FB) and subsidiary Instagram's platforms, as the momentum to boycott the platform in pursuit of civil rights for minorities picks up pace, the Wall Street Journal reported Saturday.What Happened The entertainment conglomerate is joining the ranks of a growing boycott against the Mark Zuckerberg-led social media company, with Unilever Plc (NYSE: UN), Starbucks Corporation (NASDAQ: SBUX), Verizon Communication Inc (NYSE: VZ) and hundred others already on-board.The heavily-promoted video streaming service Disney+ has cut ads on Facebook, while Hulu, which is also owned by Disney, has cut ads on Facebook's Instagram platform, the Journal noted.Disney hasn't disclosed the duration of the advertisement cull on the Menlo Park-based social media giant's platforms or made any public announcement in connection with the suspension.Why It Matters In the first half of 2020, the theme park operator was the biggest source of ad revenue for Facebook, having spent $210 million on advertisements for Disney+ alone, according to Pathmatics data reported by the Journal.Hulu's advertisements raked in $16 million for Instagram between April 15 to June 30, the research firm's data indicated.Disney's other divisions are also considering axing ads on the social network, but there is no clarity on how much they are spending on Facebook promotion, the Journal noted.The boycott is spearheaded by civil rights organizations such as Color of Change and the Anti-Defamation League under the banner "Stop Hate For Profit."The organizations' talks with Facebook have made little headway, and the boycott campaign could continue beyond July.Price Action Facebook shares traded 0.38% lower at $241.12 in the after-hours on Friday. The shares had closed 0.46% higher at $242.03 in the regular session.On the same day, Disney shares closed 0.65% lower at $118.65.See more from Benzinga * Facebook Preparing To Launch TikTok Rival In US, 50 Other Markets * Facebook, Whatsapp Get Federal Court Go-Ahead To Sue Israeli Surveillance Firm In Malware Exploit Case * Facebook To Stream Official Music Videos From Next Month, In A Challenge To YouTube: Report(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Read More...
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="
Walt Disney Co. (NYSE:
DIS) has become the latest major firm to cut advertising spending on
Facebook Inc (NASDAQ:
FB) and subsidiary Instagram’s platforms, as the momentum to boycott the platform in pursuit of civil rights for minorities picks up pace, the Wall Street Journal
reported Saturday.” data-reactid=”19″>
Walt Disney Co. (NYSE:
DIS) has become the latest major firm to cut advertising spending on
Facebook Inc (NASDAQ:
FB) and subsidiary Instagram’s platforms, as the momentum to boycott the platform in pursuit of civil rights for minorities picks up pace, the Wall Street Journal
reported Saturday.
What Happened
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The entertainment conglomerate is joining the ranks of a growing boycott against the Mark Zuckerberg-led social media company, with Unilever Plc (NYSE: UN), Starbucks Corporation (NASDAQ: SBUX), Verizon Communication Inc (NYSE: VZ) and hundred others already on-board.” data-reactid=”21″>The entertainment conglomerate is joining the ranks of a growing boycott against the Mark Zuckerberg-led social media company, with Unilever Plc (NYSE: UN), Starbucks Corporation (NASDAQ: SBUX), Verizon Communication Inc (NYSE: VZ) and hundred others already on-board.
The heavily-promoted video streaming service Disney+ has cut ads on Facebook, while Hulu, which is also owned by Disney, has cut ads on Facebook’s Instagram platform, the Journal noted.
Disney hasn’t disclosed the duration of the advertisement cull on the Menlo Park-based social media giant’s platforms or made any public announcement in connection with the suspension.
Why It Matters
In the first half of 2020, the theme park operator was the biggest source of ad revenue for Facebook, having spent $210 million on advertisements for Disney+ alone, according to Pathmatics data reported by the Journal.
Hulu’s advertisements raked in $16 million for Instagram between April 15 to June 30, the research firm’s data indicated.
Disney’s other divisions are also considering axing ads on the social network, but there is no clarity on how much they are spending on Facebook promotion, the Journal noted.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The boycott is spearheaded by civil rights organizations such as Color of Change and the Anti-Defamation League under the banner “Stop Hate For Profit.”” data-reactid=”28″>The boycott is spearheaded by civil rights organizations such as Color of Change and the Anti-Defamation League under the banner “Stop Hate For Profit.”
The organizations’ talks with Facebook have made little headway, and the boycott campaign could continue beyond July.
Price Action
Facebook shares traded 0.38% lower at $241.12 in the after-hours on Friday. The shares had closed 0.46% higher at $242.03 in the regular session.
On the same day, Disney shares closed 0.65% lower at $118.65.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See more from Benzinga” data-reactid=”33″>See more from Benzinga
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”38″>© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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