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The Many Ad Bans of Disney+: No Booze, No Politics, No Netflix

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(Bloomberg) — Walt Disney Co. debuts the ad-supported version of its Disney+ streaming service Thursday with strict rules: No alcohol commercials, no political spots and no ads from competitors.

The new service, which is priced at $8 a month, has signed up 100 sponsors across a wide swath of business, including finance, retail and automotive, Rita Ferro, Disney Media’s president of advertising, said in an interview. The company intentionally left some slots open to accommodate marketer interest after the product’s debut, she said.

Although Disney’s position on some of the restrictions may change over time, the Burbank, California-based company will shut out rivals including Netflix Inc. and Amazon.com Inc.’s Prime Video to prioritize its own shows and films, Ferro said.

“Our content is going to be the only thing you see on our platforms,” she said.

The ad-supported version of Disney’s flagship streaming platform will have 4 minutes of commercials per hour or less, or about half the ad load of Hulu, its sister streaming service. It’s becoming available at a tough time for the media industry at large amid a pullback in ad spending and fears of an imminent recession.

On Tuesday, shares of CBS owner Paramount Global fell 7% after Chief Executive Officer Bob Bakish said the company’s advertising sales this quarter will be “a bit below” the third quarter in a “challenging” market.

Industry Challenges

The comments echoed those of Jeff Shell, chief executive officer of Comcast Corp.’s NBCUniversal division, who said the advertising market is “definitely getting worse.” Last week, AMC Networks Inc. announced plans to fire 20% of its US staff, Warner Bros Discovery Inc.’s CNN division laid off employees, and NPR said it would “severely restrict” hiring after a sharp drop in sponsorship revenue.

So far, Disney has been less affected than peers by the wider downturn in ad spending and has benefited from a “flight to quality,” Ferro said.

“There’s no question that the marketplace is challenged, and there’s no question there are more challenging times to come,” Ferro said. “But we have not necessarily seen the slowdown that we have seen in the marketplace.”

With the debut of the ad-backed Disney+, the price of the commercial-free version is increasing by $3 to $11 a month. Achieving profitability in Disney’s direct-to-consumer division, which lost $1.5 billion last quarter mainly due to expenses at Disney+, is a priority for the company.

C-Suite Tumult

Disney shares fell by 13% on Nov. 9, the worst daily drop since 2001, after the company reported the loss. They were down 41% this year through the close Wednesday.

In response, Disney on Nov. 20 ousted Chief Executive Officer Bob Chapek and brought back longtime CEO Bob Iger. Iger told employees at the first town hall held after his return that the company will prioritize breaking even on its streaming initiatives over subscriber growth.

As of last quarter, Disney had about 236 million subscribers across all of its online TV businesses, including Hulu and ESPN+. Chapek said at the time that losses had peaked in the direct-to-consumer division, which Disney expects to reach profitability in 2024.

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Political parties cool to idea of new federal regulations for nomination contests

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OTTAWA – Several federal political parties are expressing reservations about the prospect of fresh regulations to prevent foreign meddlers from tainting their candidate nomination processes.

Elections Canada has suggested possible changes to safeguard nominations, including barring non-citizens from helping choose candidates, requiring parties to publish contest rules and explicitly outlawing behaviour such as voting more than once.

However, representatives of the Bloc Québécois, Green Party and NDP have told a federal commission of inquiry into foreign interference that such changes may be unwelcome, difficult to implement or counterproductive.

The Canada Elections Act currently provides for limited regulation of federal nomination races and contestants.

For instance, only contestants who accept $1,000 in contributions or incur $1,000 in expenses have to file a financial return. In addition, the act does not include specific obligations concerning candidacy, voting, counting or results reporting other than the identity of the successful nominee.

A report released in June by the National Security and Intelligence Committee of Parliamentarians expressed concern about how easily foreign actors can take advantage of loopholes and vulnerabilities to support preferred candidates.

Lucy Watson, national director of the NDP, told the inquiry Thursday she had concerns about the way in which new legislation would interact with the internal decision-making of the party.

“We are very proud of the fact that our members play such a significant role in shaping the internal policies and procedures and infrastructure of the party, and I would not want to see that lost,” she said.

“There are guidelines, there are best practices that we would welcome, but if we were to talk about legal requirements and legislation, that’s something I would have to take away and put further thought into, and have discussions with folks who are integral to the party’s governance.”

In an August interview with the commission of inquiry, Bloc Québécois executive director Mathieu Desquilbet said the party would be opposed to any external body monitoring nomination and leadership contest rules.

A summary tabled Thursday says Desquilbet expressed doubts about the appropriateness of requiring nomination candidates to file a full financial report with Elections Canada, saying the agency’s existing regulatory framework and the Bloc’s internal rules on the matter are sufficient.

Green Party representatives Jon Irwin and Robin Marty told the inquiry in an August interview it would not be realistic for an external body, like Elections Canada, to administer nomination or leadership contests as the resources required would exceed the federal agency’s capacity.

A summary of the interview says Irwin and Marty “also did not believe that rules violations could effectively be investigated by an external body like the Office of the Commissioner of Canada Elections.”

“The types of complaints that get raised during nomination contests can be highly personal, politically driven, and could overwhelm an external body.”

Marty, national campaign director for the party, told the inquiry Thursday that more reporting requirements would also place an administrative burden on volunteers and riding workers.

In addition, he said that disclosing the vote tally of a nomination contest could actually help foreign meddlers by flagging the precise number of ballots needed for a candidate to be chosen.

Irwin, interim executive director of the Greens, said the ideal tactic for a foreign country would be working to get someone in a “position of power” within a Canadian political party.

He said “the bad guys are always a step ahead” when it comes to meddling in the Canadian political process.

In May, David Vigneault, director of the Canadian Security Intelligence Service at the time, said it was very clear from the design of popular social media app TikTok that data gleaned from its users is available to the Chinese government.

A December 2022 CSIS memo tabled at the inquiry Thursday said TikTok “has the potential to be exploited” by Beijing to “bolster its influence and power overseas, including in Canada.”

Asked about the app, Marty told the inquiry the Greens would benefit from more “direction and guidance,” given the party’s lack of resources to address such things.

Representatives of the Liberal and Conservative parties are slated to appear at the inquiry Friday, while chief electoral officer Stéphane Perrault is to testify at a later date.

After her party representatives appeared Thursday, Green Leader Elizabeth May told reporters it was important for all party leaders to work together to come up with acceptable rules.

This report by The Canadian Press was first published Sept. 19, 2024.

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New Brunswick election candidate profile: Green Party Leader David Coon

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FREDERICTON – A look at David Coon, leader of the Green Party of New Brunswick:

Born: Oct. 28, 1956.

Early years: Born in Toronto and raised in Montreal, he spent about three decades as an environmental advocate.

Education: A trained biologist, he graduated with a bachelor of science from McGill University in Montreal in 1978.

Family: He and his wife Janice Harvey have two daughters, Caroline and Laura.

Before politics: Worked as an environmental educator, organizer, activist and manager for 33 years, mainly with the Conservation Council of New Brunswick.

Politics: Joined the Green Party of Canada in May 2006 and was elected leader of the New Brunswick Green Party in September 2012. Won a seat in the legislature in 2014 — a first for the province’s Greens.

Quote: “It was despicable. He’s clearly decided to take the low road in this campaign, to adopt some Trump-lite fearmongering.” — David Coon on Sept. 12, 2024, reacting to Blaine Higgs’s claim that the federal government had decided to send 4,600 asylum seekers to New Brunswick.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press. All rights reserved.

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New Brunswick election profile: Progressive Conservative Leader Blaine Higgs

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FREDERICTON – A look at Blaine Higgs, leader of the Progressive Conservative Party of New Brunswick.

Born: March 1, 1954.

Early years: The son of a customs officer, he grew up in Forest City, N.B., near the Canada-U.S. border.

Education: Graduated from the University of New Brunswick with a degree in mechanical engineering in 1977.

Family: Married his high-school sweetheart, Marcia, and settled in Saint John, N.B., where they had four daughters: Lindsey, Laura, Sarah and Rachel.

Before politics: Hired by Irving Oil a week after he graduated from university and was eventually promoted to director of distribution. Worked for 33 years at the company.

Politics: Elected to the legislature in 2010 and later served as finance minister under former Progressive Conservative Premier David Alward. Elected Tory leader in 2016 and has been premier since 2018.

Quote: “I’ve always felt parents should play the main role in raising children. No one is denying gender diversity is real. But we need to figure out how to manage it.” — Blaine Higgs in a year-end interview in 2023, explaining changes to school policies about gender identity.

This report by The Canadian Press was first published Sept. 19, 2024.

The Canadian Press. All rights reserved.

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