How ABC's $100 million annual license fee to the Film Academy influences the Oscars

The Hollywood Reporter

The Academy's decision to move eight live categories outside the 94th Academy Awards live ceremony, airing them pre-taped later-on, raises questions about ABC's influence in the broadcast. "Make no mistake about it: This decision was driven by ratings concerns," says The Hollywood Reporter's Scott Feinberg. "The Academy and ABC refuse to publicly discuss the terms of their deal, which was renewed in 2016 and runs through the 100th Oscars in 2028. But sources in the know tell The Hollywood Reporter that it calls for the Academy to receive a guaranteed annual licensing fee of about $100 million, with the potential for considerably more on top of that through revenue sharing tied to the sale of commercials." The Academy's yearly expenses, meanwhile, range from $103 million to $115 million, says Feinberg. "In other words, the revenue sharing tied to commercials makes the difference between the organization breaking even and turning a profit," says Feinberg. He also notes that "ABC’s fingerprints have been increasingly visible in other ways, too. The network’s longtime late night host Jimmy Kimmel emceed the Oscars in 2017 and ’18. This year, Tracee Ellis Ross, star of ABC’s Black-ish, announced the Oscar nominations. And all three hosts of this year’s ceremony have direct connections of their own: Regina Hall had a recurring role on Black-ish and more recently appeared on Nine Perfect Strangers for Hulu, which is co-owned by Disney; Wanda Sykes has been associated with Black-ish; and Amy Schumer has a show, Life & Beth, coming to Hulu."