Walt Disney Co. DIS has become the latest major firm to cut advertising spending on Facebook Inc 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.
The entertainment conglomerate is joining the ranks of a growing boycott against the Mark Zuckerberg-led social media company, with Unilever Plc UN, Starbucks Corporation SBUX, Verizon Communication Inc 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.
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.
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