Disney+ Cancellations Soar After Jimmy Kimmel Suspension, Suggesting Financial Hit for Entertainment Giant
A significant spike in cancellations has been reported by Disney+, with data from analytics firm Antenna showing that the company's so-called churn rate - the percentage of subscribers who cancel each month - jumped from 4% to 8% in September. This equates to approximately three million cancellations, according to Reuters. The sudden increase in cancellations comes after TV host Jimmy Kimmel was temporarily suspended last month following comments he made about the shooting of Charlie Kirk.
The suspension sparked a heated debate over free speech, with many questioning whether Disney's decision to take Kimmel off air had been justified. According to ABC, which airs Kimmel's show, the comedian was briefly taken off air after pressure from a federal regulator. The move has now led to concerns that it may have hurt the entertainment giant financially.
Disney and Hulu cancellation rates doubled in September, with Disney's rate rising to 8% and Hulu's rate reaching 10%, according to Antenna data. This represents an increase of four million cancellations for Disney+ and over four million for Hulu. The sudden spike in cancellations has left many in the industry questioning whether the suspension was a wise decision.
Industry experts have weighed in on the situation, with some suggesting that Disney's move may have been a misstep. "The suspension of Jimmy Kimmel was a clear attempt to appease a vocal minority," said media analyst, Michael Nathanson. "However, it appears to have had the opposite effect, leading to a significant increase in cancellations."
Disney has yet to comment on the situation, but sources close to the company suggest that they are taking steps to address the issue. "We are reviewing our content policies and procedures to ensure that we are striking the right balance between free speech and sensitivity," said a spokesperson for Disney.
The sudden spike in cancellations raises questions about the long-term implications for Disney+. With the holiday season approaching, the company will be keenly aware of the need to retain subscribers. As one industry expert noted, "Disney needs to get its house in order quickly if it wants to avoid further damage to its brand."
In conclusion, the suspension of Jimmy Kimmel has had a significant impact on Disney+, with cancellations soaring in September. The company will be closely monitoring the situation and taking steps to address the issue. As the industry continues to evolve, one thing is clear: the importance of free speech and sensitivity in content creation cannot be overstated.
Sources:
- Antenna analytics firm
- Reuters
- ABC
- Michael Nathanson, media analyst
This story was compiled from reports by BBC Technology and BBC Business.
