MW What Jimmy Kimmel says in his first show back may not matter. Disney has already been hammered by the culture wars.
By Lukas I. Alpert
The decision to pull Kimmel off the air sparked calls for a boycott from his supporters, and the move to bring him back has angered conservatives, putting Disney in an unwinnable position
Disney's decision to pull Jimmy Kimmel's late-night show off ABC in the face of political pressure has sparked protests and a move from the comedian's supporters to boycott the company's streaming services. Disney's decision to bring Kimmel back has similarly triggered calls for a boycott from conservative viewers.
No matter how the culture-war battle over Jimmy Kimmel plays out, the biggest loser is likely to be Walt Disney Co.
All eyes will be on Kimmel on Tuesday night during the opening monologue of his first show after a weeklong suspension, which came after remarks he made last week regarding the death of conservative activist Charlie Kirk. For Disney $(DIS)$, the damage may already be done.
The company's decision to pull Kimmel's show off the air indefinitely following the threat of repercussions from the Trump administration brought calls for a boycott of Disney's streaming services from some who saw the move as a weak-kneed capitulation to government demands and an assault on free speech.
Now Disney's announcement that it is bringing Kimmel back has sparked ire and similar calls for a boycott from conservatives who feel the company is simply caving under liberal pressure.
Two of ABC's largest affiliate owners, Sinclair Inc. $(SBGI)$ and Nexstar Media Group Inc. $(NXST)$, which together own over 60 ABC affiliate stations, have said they do not intend to broadcast Kimmel's show right away.
"Time is often the company's best friend. But the lack of clear communication from the top to the public about its decision making, actions and the missteps therein does not help to curb the criticisms this moment has understandably inspired," said Peter Kunze, a media-studies professor at Tulane University who has written extensively about Disney.
Investors have so far shown some concern. Disney's stock has traded down around 3% since Kimmel's show was taken off the air.
On Tuesday, Disney also announced it was raising prices for most of its streaming services and bundles, by $2 to $3 a month.
Needham analysts said on Tuesday that Disney should shut down ABC, as opposed to selling the network, and broadcast ABC's shows on Hulu and the ABC app to give viewers access to a less regulated platform, thereby preserving sales.
In a research note, they said that "FCC intervention has made owning broadcasting licenses too expensive and too volatile for [Disney] shareholders, in our view." Selling off the network, they argued, would require the agency's consent to transfer licenses.
In recent years, Chief Executive Bob Iger has attempted to pull the company back from major culture-war fronts after a period in which Disney had sought to tackle some issues of social injustice raised by the Black Lives Matter movement.
The shift in focus by Iger came as the company has sought to make its streaming business profitable and hammer out deals for the rights to sporting events in order to position its flagship sports brand, ESPN, at the forefront of streaming.
"Our primary mission needs to be to entertain ... and to have a positive impact on the world," Iger said at the company's annual shareholder meeting last year. "I'm very serious about that. It should not be agenda-driven."
In 2022, Disney found itself in the center of a political hot-button issue when it publicly criticized Florida legislation restricting classroom discussion of sexual orientation and gender identity. Florida Gov. Ron DeSantis responded by campaigning against "woke Disney" and working with the state legislature to strip the company of self-governing authority over a special district that is home to its Disney World resort.
The following year Disney drew criticism from the right after casting a Black actress as Ariel in a live-action remake of "The Little Mermaid." The company was hit with similar criticism earlier this year after casting a Latina actress to play Snow White in a live-action remake of the animated classic.
Disney is not alone in finding itself caught up in a political maelstrom.
Similar politically driven culture-war fights have had lasting impact at brands such as Anheuser-Busch InBev S.A.'s $(BUD)$ (BE:ABI) Bud Light, Tesla Inc. $(TSLA)$ and Cracker Barrel Old Country Store Inc. $(CBRL)$.
In 2023, Bud Light saw its sales decline by $1.4 billion and the company's market capitalization drop by $27 billion following a boycott of the brand by conservatives angry over its use of a transgender influencer in an online advertising campaign.
Tesla has seen its sales drop 13% on a year-over-year basis as Chief Executive Elon Musk angered the electric-vehicle company's liberal-leaning clientele by embracing President Donald Trump and far-right politicians abroad.
Cracker Barrel reported a decline in revenue and an 8% drop in store visits after a recent makeover of its logo and stores angered some customers.
How Disney may weather the political storm financially remains to be seen, but analysts say any impact of even a protracted boycott is likely to be limited, as the company is highly diversified and global in its reach.
Still, the Kimmel episode could leave a bad taste in people's mouths.
"In recent years, Disney has argued it is guided by values, not politics. What is unclear, of course, is what those values are - and if such values can ever be apolitical," Tulane's Kunze said. "Disney must handle this issue not only for the present moment, but with an eye toward its future. Controversies come and go, but audiences remain - and they remember."
Bill Peters contributed.
-Lukas I. Alpert
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
September 23, 2025 15:36 ET (19:36 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.