Disney quietly acknowledged last week its left-wing political agenda is out of step with the American public and reducing the company’s profits.
The entertainment giant’s annual 10-K financial statement became publicly available on Nov. 21 and the form lists Disney’s social activism as one of the company’s “risk factors” for future performance. (RELATED: EXCLUSIVE: Disney’s Latest DEI Move Is To Give Pronoun Pins To Epcot Janitors)
“We face risks relating to misalignment with public and consumer tastes and preferences for entertainment, travel and consumer products, which impact demand for our entertainment offerings and products and the profitability of any of our businesses,” Disney’s 10-K reads.
LAKE BUENA VISTA, FL – JULY 09: A view of the Walt Disney World theme park entrance on July 9, 2020 in Lake Buena Vista, Florida. The theme park is scheduled to reopen on Saturday despite a surge in new Covid-19 infections throughout Florida, including the central part of the state where Orlando is located. (Photo by Octavio Jones/Getty Images)
“Generally, our revenues and profitability are adversely impacted when our entertainment offerings and products, as well as our methods to make our offerings and products available to consumers, do not achieve sufficient consumer acceptance. Further, consumers’ perceptions of our position on matters of public interest, including our efforts to achieve certain of our environmental and social goals, often differ widely and present risks to our reputation and brands,” the document continues.
Disney CEO Bob Iger acknowledged its recent box-office flops during an investor call upon the release of Disney’s quarterly earnings report on Nov. 8.
“As I’ve looked at our overall output, meaning the studio, it’s clear that the pandemic created a lot of challenges creatively for everybody, including for us,” Iger said, according to CNBC. “I’ve always felt that quantity can be actually a negative when it comes to quality, and I think that’s exactly what happened, we lost some focus.”
Disney’s challenges include the months-long actors’ strike, an ongoing legal battle with Republican Florida Gov. Ron DeSantis, declining profits from ESPN, box office flops and a streaming service that has yet to be profitable.
Florida Governor Ron DeSantis answers questions from the media in the Florida Cabinet following his “State of the State” address during a joint session of the Florida Senate and House of Representatives at the Florida State Capitol in Tallahassee, Florida, on March 7, 2023. – DeSantis positioned himself Tuesday as the leading Republican alternative to White House candidate Donald Trump, launching a legislative session that offers red meat for the ex-president’s base as the party’s rising star weighs his own 2024 campaign. (Photo by CHENEY ORR / AFP) (Photo by CHENEY ORR/AFP via Getty Images)
Disney laid off thousands of employees at ESPN and other subdivisions earlier this year in order to reduce costs and restructure the company, Variety reported. ESPN fired some of the network’s most well-known on-air commentators in July as part of its restructuring.
The company believes its streaming business can be profitable in the fourth quarter of fiscal year 2024 and Iger reportedly told investors in September he plans on quieting down the company’s culture war battles. Disney’s recent movies and TV shows have strongly promoted left-wing ideas about race, gender and sexuality.
In March 2022, Bob Chapek, Disney’s previous CEO, came out against DeSantis’ legislation banning the discussion of gender identity and sexuality in classrooms for K-3 students. Chapek was Iger’s chosen successor when he became CEO in February 2020 after leading Disney’s parks division.
DeSantis responded by removing the Reedy Creek Improvement District, Disney’s self-governing zone and special tax district, and installing his own governing board to oversee the Walt Disney World resort.
Disney is suing the DeSantis administration for what the company argues constitutes government retaliation against the company. Disney narrowed its lawsuit in September to focus solely on its free speech claim against DeSantis.
Iger came out of retirement in November 2022 to replace Chapek and reportedly told employees he wanted to tone down the company’s culture war fights. Iger criticized DeSantis in April for his actions against the company after Disney publicly attacked DeSantis’ legislation.
Ridership at all four of Disney World’s parks dropped over the summer and a poll taken in May showed Disney’s social stances harmed the company’s reputation.
Disney did not respond to a request for comment.