Disney has reportedly taken a significant hit following the suspension of Jimmy Kimmel by its subsidiary ABC. The suspension, which lasted from September 17 to September 24, led to a massive backlash on social media, with many calling for a boycott of Disney. According to sources, over 1.7 million Disney streaming subscriptions were cancelled within a seven-day period, affecting Disney+, Hulu, and ESPN. This translates to a daily loss of approximately 242,800 subscribers.
The cancellations represent a 436 percent increase in weekly subscriber churn, significantly impacting Disney’s valuation. The company’s stock price dropped by about three percent during Kimmel’s suspension, resulting in a loss of around $6.4 billion. Although Disney is likely to recover from this dip, it serves as a clear indication of public discontent.
Kimmel’s suspension was preceded by a threat from Federal Communications Commission (FCC) chairman Brendan Carr, who called for ABC to take action against the late-night host. The network’s decision to pull Kimmel off the air sparked widespread criticism, with many expressing concerns about free speech. Upon his return to air, Kimmel joked about Disney’s request for him to announce instructions on how viewers could reactivate their Disney+ and Hulu accounts.
The controversy surrounding Kimmel’s suspension has been further complicated by Disney’s recent announcement of a price increase for Disney+ subscriptions, set to take effect on October 21. This move is likely to be met with resistance from subscribers, who are already reeling from the suspension of Kimmel’s show. According to reports, Disney had planned the price hike prior to Kimmel’s suspension and rushed to resolve the situation to mitigate further backlash.
The incident highlights the challenges faced by media companies in balancing their creative output with regulatory pressures and public expectations. As Disney navigates this complex landscape, it remains to be seen how the company will address the concerns of its subscribers and stakeholders. With the price increase looming, Disney will need to carefully consider its next steps to maintain its position in the competitive streaming market.
