Disney Faces Subscriber Surge in Cancellations After Kimmel Controversy
Politics and business have never mixed easily — and Disney just got a stark reminder.
Disney and Hulu both saw their churn rates double in September after the company temporarily pulled Jimmy Kimmel Live! off the air. The decision came amid backlash over comments Kimmel made about the death of conservative activist Charlie Kirk.
According to data from analytics firm Antenna, Disney+’s churn rate jumped to 8% in September, up from its usual 4% monthly average. Hulu’s churn rate also doubled to 10%, compared to its typical 5%.
Churn represents the share of subscribers who cancel their service in a given month.
Disney, which reported 183 million Disney+ and Hulu subscribers worldwide at the end of June, confirmed that cancellations had spiked. However, a company insider claimed the actual churn rate was slightly lower than Antenna’s estimate. The source also noted that a recent price hike for Disney+ likely contributed to the higher cancellation figures.
The controversy began on September 17, when Disney pulled Kimmel’s show from ABC following remarks that drew criticism from the Trump administration. The move prompted accusations of censorship and sparked calls among conservatives to boycott Disney’s streaming platforms, including Disney+, Hulu, and ESPN+.
Kimmel’s show returned less than a week later, and according to Disney, some subscribers rejoined soon after.
Still, the episode rattled investors. Disney’s stock fell more than 3% during the suspension and has yet to recover. Analysts warned that even short-term declines in subscriber growth could weigh heavily on Disney’s streaming-driven strategy.
The company now joins a growing list of brands — including Bud Light, Tesla, and Cracker Barrel — that have faced financial blowback from politically charged controversies.
Bud Light, for example, lost $1.4 billion in sales and $27 billion in market value after a conservative boycott in 2023. Tesla has faced a 13% sales decline as liberal customers distanced themselves from CEO Elon Musk’s political affiliations, while Cracker Barrel saw revenue and store visits drop after brand changes angered parts of its core audience.
As Disney navigates this latest storm, it serves as another reminder that in today’s polarized climate, corporate decisions — even those meant to calm controversy — can quickly turn into costly business risks.
