Multinational companies such as Ford and PepsiCo have joined many Saudi-based companies and stopped advertising on the network, despite the fact that its ratings have soared.
The boycott is understood to be due to pressure from the Saudi government, which is said to be upset by the network's favourable presentation of Osama bin Laden.
A report published in Forbes magazine says that losses for the TV network are expected to be in the region of $4m (£2.8m).
Over the past six months, Al-Jazeera has been the unofficial mouthpiece for bin Laden and his Al-Queda terrorist network. This fact, in conjunction with its move into the digital market, has triggered a massive ratings boost for the Arabic-language channel.
Despite Al-Jazeera's success, advertisers are becoming increasingly uncomfortable associating themselves with the network.
"In the Arab world, advertisers are more concerned with politics than ratings," said Ali Kamal, Al-Jazeera's marketing director.
It is unclear exactly where within the Saudi government the pressure for boycotting the station is coming from. A Saudi government spokesperson today said that he did not see it as the government's place to interfere in business.
However, it is clear that advertisers are keen to avoid being associated with an organisation accused of giving favourable coverage to terrorists in the Middle East.
Al-Jazeera claim to be the only independent, non government-regulated, Arabic-language news channel in the world. The network has 35m viewers around the world and claims to attract 93% of the UK's 500,000-strong Arabic community.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
