DTC Drug Ad Ban Threatens Broadcast Revenue

For decades, pharmaceutical companies have spent heavily on TV ads, but two policies under consideration by US Health and Human Services Secretary Robert F. Kennedy Jr. could disrupt this, potentially straining broadcasters’ finances, according to a Bloomberg report.

The policies would either require drug ads to detail risks more extensively, making them longer and costlier, or prevent drugmakers from deducting direct-to-consumer ad costs as business expenses, increasing their expenses. While not a total ban, these measures would raise the cost of advertising for pharmaceutical companies.

In the US, where drug ads are legal unlike in most countries, pharmaceutical companies spent $5.15 billion on TV ads in 2024, with $3.4 billion in the first eight months alone, an 8.1% increase from the previous year. Nearly half of these ads aired on news networks like MSNBC, CBS News, CNN, and Fox News, per a December eMarketer report.

RFK Jr.

Kennedy, a longtime critic of direct-to-consumer drug ads, argues they drive higher prescription drug use. HHS is reviewing the issue but has not finalized decisions. “Direct-to-consumer pharmaceutical advertising must prioritize accuracy, patient safety, and the public interest—not profit margins,” said HHS spokesperson Andrew Nixon, emphasizing exploration of stricter oversight.

PhRMA’s Sarah Ryan defended such ads, stating they provide fact-based information to help patients make informed health decisions.

The policies would impact both entertainment and news broadcasters, who rely on ad revenue alongside licensing, cable, satellite fees, and digital subscriptions. As digital platforms erode traditional ad income, limiting drug ads could further challenge broadcasters’ finances.

After Kennedy suggested a potential ad ban in November, Fox Corporation’s CFO Steve Tomsic downplayed its impact, noting drug ads are a low single-digit percentage of Fox’s revenue. Fox did not comment further, and Disney, ABC News, MSNBC, NBCUniversal, NBC News, Paramount, CBS News, and Warner Bros. Discovery (CNN’s parent) either did not respond or declined to comment.