The news: Legacy news is facing mounting threats after President Trump suggested on Truth Social that ABC and NBC could have their broadcast licenses revoked.

Accusing the networks of serving as “AN ARM OF THE DEMOCRAT PARTY,” the news follows a string of scrutiny against public broadcasting from the current administration—and has implications for the advertisers that rely on these channels.

The trend: ABC and NBC aren’t the first networks to feel the pressure. Public broadcasters like NPR and PBS face federal budget cuts, and programs like “The Late Show” are speculated to have been canceled for political reasons. And though national broadcast news networks aren’t licensed by the Federal Communications Commission, their local affiliates could be threatened—though Axios notes that pulling licenses from these affiliates would be a burdensome process.

Still, networks are facing increased pressure to comply with the administration, with CBS parent Paramount Global paying $16 million to settle with the Trump administration following a “60 Minutes” interview with Kamala Harris.

For brands: Heightened scrutiny is raising concerns for advertisers about where they invest.

• Channels with perceived liberal biases are facing a threat of disruption that could disrupt ad inventory, viewership patterns, and brand safety considerations. For marketers investing heavily in these networks, the risk extends to possible backlash.
• And with channels like NBC and ABC falling behind right-leaning networks like Fox News as top news sources for US adults, advertisers may be increasingly reluctant to overcommit ad dollars to outlets facing heightened political scrutiny without a sizable payoff.

Our take: As news channels face more scrutiny, advertisers are being forced to reconsider where they spend—but political volatility still needs to be weighed against long-term loyalty among key demographics.

• Gen Z adults, key drivers of buyer growth, are generally more likely to identify as liberal than older Americans, per Axios. Shifting spending too dramatically from channels that could be perceived as having liberal biases could damage customer reach in the long-run, especially as politics are more likely to influence buying decisions among these consumers.
• Advertisers must plan for flexibility and monitor audience sentiment in real-time. Tracking shifting political attitudes and maintaining contingency plans will allow for brands to quickly adjust as political and legal pressures evolve.