Disney+ and Hulu experienced a doubling of cancellation rates in September following the brief removal of TV host Jimmy Kimmel from air, suggesting a potential financial impact on the entertainment conglomerate.
According to data from analytics firm Antenna, Disney+’s churn rate – the monthly percentage of subscribers who cancel – surged from an average of 4% to 8%, representing approximately three million cancellations. Hulu’s churn rate also climbed to 10%, equating to over four million cancellations.
Disney suspended Kimmel following comments he made regarding the shooting of Charlie Kirk, prompted by pressure from a federal regulator. The decision sparked debates concerning free speech.
ABC, the network broadcasting Jimmy Kimmel Live, reinstated him within a week following a wave of criticism.
On September 17, Disney, the parent company of ABC, decided to suspend the comedian. This occurred two days after Kimmel stated on his show that the “Maga gang” was “desperately trying to characterise this kid who murdered Charlie Kirk as anything other than one of them” and attempting to “score political points from it”.
The abrupt suspension occurred hours after Brendan Carr, chair of the Federal Communications Commission (FCC), threatened to revoke ABC’s broadcast license.
The decision was met with protests in California and widespread criticism from writers’ and actors’ guilds, lawmakers, and the American Civil Liberties Union (ACLU).
Critics and First Amendment advocates denounced ABC’s decision as censorship and a violation of free speech, urging economic pressure on Disney and advocating for boycotts of the company’s services.
Hundreds of celebrities and Hollywood figures signed a letter in support of Kimmel, who was subsequently reinstated.
The new data from Antenna, released on Monday, offers the first indication that Disney may have suffered repercussions from the controversy.
Disney+ and Hulu experienced a greater loss of subscribers in September compared to previous months, while Netflix maintained a steady churn rate of 2%.
However, it remains unclear whether Kimmel’s suspension was the sole factor contributing to the surge in cancellations.
Disney’s decision to suspend Kimmel coincided with the announcement of previously planned subscription price increases, as the company faces pressure to enhance profitability from its streaming services.
Despite the increased cancellation rates, both Disney+ and Hulu observed a rise in new sign-ups in September, partially mitigating the losses, according to Antenna.
Disney declined to comment, and Hulu has yet to issue a response.
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