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Jimmy Kimmel suspension hurts brand

by FeeOnlyNews.com
5 months ago
in Markets
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Jimmy Kimmel suspension hurts brand
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Gregg Donovan displays a sign at the El Capitan Entertainment Centre, where “Jimmy Kimmel Live!” is recorded to celebrate the show’s return on Hollywood Boulevard in Los Angeles, California, U.S. on Sept 23, 2025.

Gabriel Cortes | CNBC

The image for Disney and its streaming service plunged to multiyear lows after pulling comedian Jimmy Kimmel temporarily off air, a move that managed to alienate members of both political parties, according to analysis by investment bank Jefferies.

The firm, using Morning Consult data, shows sentiment for the company and its Disney+ platform have fallen to levels not seen in at least two years. Sentiment from Democrats, who had typically had better views of Disney before the past two weeks, soured more strongly than Republicans. Though both groups showed significant declines.

“The last two weeks for Disney have been as eventful to say the least, and have been equally controversial,” analyst James Heaney wrote in a Thursday note to clients. The analyst noted a recent price hike for Disney+ added to the plunging mood around the brand.

Disney became a cultural flashpoint after taking Kimmel’s late-night comedy show briefly off the air in the wake of his comments about slain conservative activist Charlie Kirk last month. ABC made the move after Federal Communications Commission Chair Brendan Carr hinted the network’s broadcast license could be yanked. Local ABC-affiliated stations owned by Nexstar Media Group and Sinclair preempted the show in their areas before Disney’s decision.

Stock Chart IconStock chart icon

Disney shares, 1-month

Heaney noted that the entertainment giant faced backlash for both Kimmel’s original comments and the subsequent move to halt his show’s production. And then bring him back.

Critics of Disney’s decision — including Democratic-leaning Hollywood power players — argued that the company was acquiescing to appease President Donald Trump’s administration rather than stand up for the First Amendment right of free speech. Kimmel’s show returned to much higher viewership than is typical.

A chart Heaney shared with clients of the bank’s research showed the readings of positive Disney sentiment divided by negative sentient among Democrats, Republicans and all consumers plunging to near zero, the lowest readings going back to before 2024.

Disney also announced late last month it was upping prices for many of its subscriptions by $2 to $3. The new cost tiers take effect Oct. 21.

Heaney noted that Disney as a whole saw its highest brand awareness in the past two years. For Disney+ specifically, the jump was much smaller, which the analyst said bodes well from a business perspective for CEO Bob Iger.

“This is clearly a PR hit for Disney,” Heaney said. “But the data implies a smaller impact on Disney+ than the brand as a whole, which may limit the amount of streaming churn.”

Disney shares have dropped 6% over the last month, pulling the stock into the red for 2025. But Heaney reaffirmed his buy rating and $144 price target, which implies nearly 30% upside over Wednesday’s close.



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