Kimmel Fallout Costs Disney Millions

Disney Streaming Services Face Massive Subscriber Exodus Following Kimmel Controversy A significant wave of cancellations has reportedly hit Disney’s streaming services in the wake of the suspension of Jimmy Kimmel Live. According to reporter Marisa Kabas, founder of The Handbasket, more than 1.7 million subscribers canceled their paid Disney streaming plans between September 17 and September 23. This figure is said to include subscriptions to Disney+, Hulu, and ESPN. This reported subscriber loss represents a staggering 436 percent increase over the service’s usual churn rate for that period. The timing of this mass cancellation aligns directly with the controversy surrounding the late-night talk show. The upheaval began on September 17 when Disney-owned ABC suspended Jimmy Kimmel Live. The suspension came after President Donald Trump and members of his administration accused the host of making inappropriate comments regarding the assassination of right-wing influencer Charlie Kirk. Disney later announced on September 22 that the program would be reinstated the following night. However, the company’s initial action appears to have triggered a substantial negative reaction from a segment of its audience, leading to the mass cancellations. Further compounding the situation for Disney was a decision to increase subscription prices for its streaming services, which was also announced last week. This price hike could potentially prolong the wave of cancellations, as subscribers who were already reconsidering their plans may have been given an additional financial reason to leave. Kabas’ source also claimed that the timeline of events was strategically managed by Disney. The source alleged that the company sped up the return of Jimmy Kimmel because it had already planned to announce the price increase for the following Tuesday, suggesting an effort to manage two separate public relations challenges. The situation highlights the volatile nature of the streaming market and how corporate decisions, especially those intersecting with political and social issues, can have immediate and severe financial consequences. Losing 1.7 million subscribers in a single week is a significant blow for any service, and for Disney, which is competing fiercely in the streaming wars, such a loss could impact its quarterly earnings and market position. The company has not yet publicly commented on these specific claims regarding subscriber numbers. The broader entertainment industry will be watching closely to see if this is a temporary backlash or the start of a longer-term trend for Disney’s streaming platforms. The combination of a polarizing public controversy and a simultaneous price increase creates a perfect storm that seems to have prompted a decisive reaction from millions of customers.

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