Technology & Innovation

Disney+ cancellations spiked after Jimmy Kimmel’s suspension


Daniel KayBusiness reporter

Reuters A man in a black suit speaks with his hands raised in front of him.Reuters

Comedian Jimmy Kimmel was temporarily suspended last month

Cancellation rates on Disney+ and Hulu doubled in September after TV host Jimmy Kimmel briefly went off the air, suggesting the move may have hurt the entertainment giant financially.

Data from analytics firm Antenna shows that Disney+’s so-called cancellation rate — the percentage of subscribers who cancel each month — jumped from an average of 4% to 8%, which equates to about three million cancellations, while Hulu’s rate rose to 10%, or more than 4 million.

Disney suspended Kimmel following comments he made about the firing of Charlie Kirk, following pressure from a federal regulator. The decision sparked debates about freedom of expression.

ABC, which broadcasts Jimmy Kimmel Live, reinstated him within a week after the backlash.

Disney, which owns ABC, decided on September 17 to take the comedian off the air, two days after Kimmel said during one of his shows that the “MAGA gang” was “desperately trying to paint this kid who killed Charlie Kirk as anything other than one of them” and trying to “score political points out of him.”

The surprise comment came hours after Brendan Carr, the head of broadcasting regulator the Federal Communications Commission (FCC), threatened to revoke ABC’s broadcast license.

The move was met with protests in California and was criticized by the writers’ and actors’ unions, lawmakers and the American Civil Liberties Union (ACLU).

Critics and First Amendment advocates slammed ABC’s decision as censorship and a violation of free speech. They also called for economic pressure on Disney, and urged people to boycott the company’s services.

Hundreds of celebrities and Hollywood creatives signed a letter supporting Kimmel, who was later reinstated.

Reuters A man at a demonstration holds a sign in the shape of Mickey Mouse's face, with the words: "Protecting freedom of expression" and "Disney ABC canceled".Reuters

Critics called for a boycott of Disney’s streaming services

New data from Antenna, released Monday, provides the first indication that Disney may have taken a hit from the blowback.

Disney+ and Hulu lost millions more subscribers in September than in recent months, while Netflix saw its churn rate hold at 2%.

But it’s not clear whether Kimmel’s suspension was the only factor leading to the increase in cancellations.

Disney’s move to suspend Kimmel’s service coincided with its announcement of previously planned subscription price increases, as the company faces pressure to boost its profits from streaming services.

Despite the rise in cancellation rates, both Disney+ and Hulu saw an uptick in new subscriptions in September, offsetting some of the loss, according to Antenna.

Disney declined to comment.

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