In September, Disney+ and Hulu experienced a significant rise in subscriber cancellation rates, reportedly doubling following a temporary suspension of comedian Jimmy Kimmel. Analytics from Antenna indicate that Disney+ saw its churn rate—denoting the percentage of subscribers who cancel—jump from an average of 4% to 8%, translating to roughly three million cancellations. Meanwhile, Hulu’s rate rose to 10%, equating to more than four million cancellations.
Kimmel was suspended after making comments regarding the shooting of Charlie Kirk, an incident that drew swift action from Disney due to pressure from the Federal Communications Commission (FCC). This decision prompted discussions surrounding free speech. After facing backlash, ABC reinstated Kimmel within a week.
On September 17, Disney made the decision to suspend Kimmel shortly after comments he made during his show were criticized. These remarks suggested that political motivations were at play in how the incident was being characterized. The suspension was met with protests in California and drew criticism from various groups, including the American Civil Liberties Union (ACLU), who viewed the action as a potential infringement on free speech. Additionally, several celebrities and industry professionals expressed their support for Kimmel through a letter.
The recent data from Antenna suggests that Disney may have faced financial repercussions from this incident, although the precise reasons for the rise in cancellation rates remain unclear. Around the same time as Kimmel’s suspension, Disney announced planned increases to subscription prices, aiming to enhance profitability from its streaming platforms. Notably, despite the increase in cancellations, both Disney+ and Hulu also recorded new sign-ups in September, which somewhat mitigated subscriber losses. Disney has chosen not to comment on the situation, and Hulu has yet to provide a response.
Source: https://www.bbc.com/news/articles/c1wle4dx4qwo?at_medium=RSS&at_campaign=rss