
<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Hours after Elon Musk told companies to &#8220;go f***&#8221; themselves for pulling their advertisements from X over concerns about antisemitism—and called out Disney CEO Bob Iger by name—a group of right-wing users on the social media platform have called for Disney+ subscribers to cancel their accounts.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p><a href="https://twitter.com/CollinRugg/status/1730227884957040938" target="_blank" rel="noreferrer noopener">Multiple</a>&nbsp;<a href="https://twitter.com/realmichaelseif/status/1730275154805068020" target="_blank" rel="noreferrer noopener">right-wing</a>&nbsp;<a href="https://twitter.com/ChayaRaichik10/status/1730296643872792752" target="_blank" rel="noreferrer noopener">accounts</a>&nbsp;on X, the platform formerly known as Twitter, called on subscribers to Disney’s streaming service Disney+ to cancel their subscriptions, with the X account End Wokeness&nbsp;<a href="https://twitter.com/EndWokeness/status/1730218208324395011" target="_blank" rel="noreferrer noopener">posting</a>&nbsp;instructions for cancellation with the caption: “Stop giving money to people that hate you.”</p>



<p>Those calls follow Disney’s decision earlier this month to&nbsp;<a href="https://www.forbes.com/sites/brianbushard/2023/11/17/apple-and-disney-pull-x-ads-after-musks-promotion-of-antisemitic-post-joining-these-other-companies/?sh=3f0da76a34fb">suspend its advertising</a>&nbsp;on the social media platform, joining a growing list of companies including Apple, IBM, Lionsgate and Xfinity, following the release of a scathing report that found advertisements on X alongside pro-Nazi posts, and after Musk endorsed a post&nbsp;<a href="https://www.forbes.com/sites/tylerroush/2023/11/16/elon-musk-condemned-after-calling-antisemitic-post-actual-truth/?sh=7e010cc14020">widely condemned</a>&nbsp;as antisemitic.</p>



<p>Disney’s decision to stop running ads on X could cost the social media platform millions of dollars, while X users’ calls for a boycott of Disney+ would have to reach many of its&nbsp;<a href="https://www.forbes.com/sites/tonifitzgerald/2023/08/09/new-record-for-disney-sheds-117-million-subscribers-password-crackdown-coming/?sh=5fe4d2b51d7b">146 million</a>&nbsp;subscribers (as of August) to have an equivalent effect.</p>



<p>Speaking at the New York Times’ DealBook Summit on Wednesday, Musk&nbsp;<a href="https://www.forbes.com/sites/antoniopequenoiv/2023/11/29/elon-musk-says-advertisers-that-have-left-x-shouldnt-come-back/?sh=1f7dc21b10c0">accused advertisers</a>&nbsp;that left the platform of “blackmailing” him with money and crudely told them to “go f**k themselves,” while addressing Iger in the crowd, saying, “hi Bob.”</p>



<p>Iger, also speaking at the summit,&nbsp;<a href="https://www.youtube.com/watch?v=8pSxx1e5n34" target="_blank" rel="noreferrer noopener">said</a>&nbsp;he has “a lot of respect for Elon and what he’s accomplished,” but took exception with Musk’s endorsement of the post on X, saying: “By him taking the position that he took in quite a public manner, we just felt that the association with that position and Elon Musk and X was not necessarily a positive one for us.”</p>



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<h2 class="wp-block-heading" id="h-contra">CONTRA</h2>



<p>X could lose as much as $75 million in lost advertising revenue due to more than a dozen companies including Airbnb, Coca-Cola, Disney, IBM, Microsoft and Xfinity pulling out, the New York Times&nbsp;<a href="https://www.nytimes.com/2023/11/24/business/x-elon-musk-advertisers.html" target="_blank" rel="noreferrer noopener">reported</a>.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>IBM became one of the first in a string of high-profile advertisers to&nbsp;<a href="https://www.forbes.com/sites/mollybohannon/2023/11/16/ibm-suspends-advertising-on-x-after-ads-appear-near-pro-nazi-posts/?sh=17f133ce6a4d">suspend its ads</a>&nbsp;on the platform this month, after a report from left-wing watchdog Media Matters for America found advertisements for the company—as well as Apple, Oracle and Xfinity—appeared near neo-Nazi posts and posts praising Adolf Hitler. Musk suggested the watchdog went out of its way to achieve the result, claiming the finding represented a wildly different experience from that of a typical user. X Corp. later&nbsp;<a href="https://www.forbes.com/sites/tylerroush/2023/11/18/elon-musk-threatens-thermonuclear-lawsuit-against-group-reporting-antisemitic-x-posts-appearing-near-ads/?sh=27c854462b13">filed a defamation lawsuit</a>&nbsp;against Media Matters. Musk also came under fire after he&nbsp;<a href="https://www.forbes.com/sites/tylerroush/2023/11/16/elon-musk-condemned-after-calling-antisemitic-post-actual-truth/?sh=648123644020">shared</a>&nbsp;a post on X in which a user claimed “Jewish communities have been pushing the exact kind of dialectical hatred against whites that they claim to want people to stop using against them,” an argument Musk called “the actual truth.” The White House also&nbsp;<a href="https://www.forbes.com/sites/brianbushard/2023/11/17/white-house-condemns-musk-over-abhorrent-promotion-of-antisemitic-and-racist-hate/?sh=4990834c1ea5">condemned</a>&nbsp;that post, issuing a statement calling the claim an “abhorrent promotion of antisemitic and racist hate.” Musk on Wednesday apologized for the post and&nbsp;<a href="https://www.theverge.com/2023/11/29/23981771/musk-says-the-antisemitic-post-was-a-mistake" target="_blank" rel="noreferrer noopener">admitted</a>&nbsp;it was “one of the most foolish, if not the most foolish, thing I’ve done” on the platform.</p>



<h2 class="wp-block-heading" id="h-big-number">BIG NUMBER</h2>



<p>$7.2 billion. That’s how much Disney spent on advertisements in fiscal year 2022, surpassing its advertising budget in 2021 ($5.5 billion) and 2020 ($4.7 billion).</p>



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



<p>Disney became the latest in a wave of major companies to draw the ire of right-wing critics largely online. Earlier this year, Bud Light drew&nbsp;<a href="https://www.forbes.com/sites/conormurray/2023/05/20/far-right-pundits-are-slamming-companies-including-nike-adidas-and-ford-for-lgbtq-outreach-as-pride-month-nears/?sh=64d1685f76d0">massive pushback</a>&nbsp;among right-wingers, including pundits Candace Owens and Ben Shapiro, after the beer brand launched a partnership with transgender TikTok star Dylan Mulvaney. Fast food chain Chick-fil-A also came under fire after right-wing online circles expressed outrage over its hiring of a director of diversity, equity and inclusion in 2021, while Adidas faced right-wing pushback for a marketing campaign that included trans-inclusive swimwear. Target additionally faced right-wing blowback online for an LGBTQ Pride product line. In response to the criticism, Target&nbsp;<a href="https://www.forbes.com/sites/conormurray/2023/05/24/target-removes-pride-items-after-conservative-firestorm-sparking-criticism-from-lgbtq-groups/?sh=18e16e20e512">pulled</a>&nbsp;items from that line in late May, just a week before the start of Pride month, claiming in a statement that threats and criticism it received over the products were “impacting our team members’ sense of safety and well-being,” though the move also sparked pushback in LGBTQ circles over claims the company caved to right-wing blowback.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/antoniopequenoiv/2023/11/29/elon-musk-says-advertisers-that-have-left-x-shouldnt-come-back/?sh=1f7dc21b10c0">Elon Musk Says Advertisers That Have Left X Shouldn’t Come Back</a>&nbsp;(Forbes)</p>



<p><a href="https://www.forbes.com/sites/brianbushard/2023/11/17/apple-and-disney-pull-x-ads-after-musks-promotion-of-antisemitic-post-joining-these-other-companies/?sh=3f0da76a34fb">Apple And Disney Pull X Ads After Musk’s Promotion Of Antisemitic Post—Joining These Other Companies</a> (Forbes)</p>


Popular Streaming Services Photo Illustrations

Disney Vs. Musk: Right-Wing X Users Push For Disney+ Cancellations As Disney Pulls Ads


<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



<p>Disney’s streaming unit beat expectations even as it shed 12 million Disney+ subscribers, according its latest quarterly earnings report released Wednesday afternoon, as the entertainment giant contends with turbulence while struggling to return profits to prior glory.</p>



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



<p>Disney’s $22.33 billion of revenue and $1.03 earnings per share largely tracked consensus analyst estimates of $22.5 billion and $0.96, respectively, as tracked by FactSet.</p>



<p>The conglomerate’s park and linear television units continued to beef up the bottom line, as the units’ $1.1 billion and $1.9 billion in quarterly operating profit were in line with expectations, respectively, while Disney bled $512 million in its flashier direct-to-consumer media business including Disney+, ESPN+ and Hulu, far below projections of a $758 million loss.</p>



<p>The company reported a staggering 12 million decrease in Disney+ subscribers, though its subscriber loss in the U.S. and Canada was a milder 1%.</p>



<p>Disney incurred $2.7 billion in restructuring costs during the quarter in which the company concluded its round of roughly&nbsp;<a href="https://www.cnn.com/2023/05/22/media/disney-layoffs/index.html" target="_blank" rel="noreferrer noopener">7,000</a>&nbsp;layoffs globally.</p>



<p>Shares of Disney registered a roughly 1% in after hours trading as investors digested the mixed-bag report.</p>



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



<p>Disney’s earnings release comes amid a turbulent stretch for the company’s stock, which is down 20% over the last five years, far underperforming the S&amp;P 500’s roughly 60% return over the timeframe. The slump comes after a brief surge in Disney’s share price as investors&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2022/11/21/disney-shares-jump-9-on-return-of-bob-igers-magic/?sh=14889bd28b2f">heralded</a>&nbsp;the November return of the company’s long-time CEO Bob Iger. But Disney’s stock is down 4% since Iger’s reclamation of the throne, well below the S&amp;P’s 13% gain during the period, as investors&nbsp;<a href="https://www.forbes.com/sites/dereksaul/2023/05/11/disney-stock-set-for-worst-day-since-ceo-bob-igers-comeback/?sh=38001ff940da">grew impatient</a>&nbsp;with a lack of results in Iger’s cost-cutting vision to grow profits as streaming losses mounted.</p>



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



<p>Much of Disney’s bottom-line issues come as the legacy media sector grapples with a decline in the popularity of linear television: Its $1.1 billion in operating profit for its media and entertainment unit during the first three months of 2023 was down from $1.9 billion the year prior and nearly $3 billion five years ago. Overall, Disney’s operating profit during the most recent quarter was roughly a fifth less robust than it was during the same period five years ago ($4.2 billion).</p>



<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h2>



<p>How Disney’s&nbsp;<a href="https://www.forbes.com/sites/brianbushard/2023/08/08/penn-entertainment-sells-barstool-sports-back-to-founder-dave-portnoy-in-deal-rebranding-sportsbook-as-espn-bet/?sh=52dfb7d968d2">$1.5 billion</a>&nbsp;agreement with sports gambling operator PENN Entertainment announced Tuesday – and subsequent launch of an ESPN-branded sportsbook – will drive sales at Disney’s sports segment. Iger&nbsp;<a href="https://www.cnbc.com/2023/07/13/disney-open-to-finding-espn-strategic-partner.html" target="_blank" rel="noreferrer noopener">said</a>&nbsp;last month the company is open to offloading an equity stake in ESPN.</p>



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



<p>Even amid entertainment companies’ challenges as consumer preferences shift, Disney “should survive and thrive in this environment due to its diversification, multiplatform media offerings, large vault of content, and pricing premium,” Daiwa analyst Jonathan Kees proclaimed in a Tuesday note previewing earnings.</p>



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<p><a href="https://www.forbes.com/sites/brianbushard/2023/08/08/penn-entertainment-sells-barstool-sports-back-to-founder-dave-portnoy-in-deal-rebranding-sportsbook-as-espn-bet/" target="_blank" rel="noreferrer noopener">MORE FROM FORBES<strong>Penn Entertainment Sells Barstool Sports Back To Founder Dave Portnoy In Deal Rebranding Sportsbook As ESPN BET</strong><small>By&nbsp;<strong>Brian Bushard</strong></small></a></p>



<p><a href="https://www.forbes.com/sites/dereksaul/2023/05/11/disney-stock-set-for-worst-day-since-ceo-bob-igers-comeback/" target="_blank" rel="noreferrer noopener">MORE FROM FORBES<strong>Disney Stock Set For Worst Day Since CEO Bob Iger&#8217;s Comeback</strong><small>By&nbsp;<strong>Derek Saul</strong></small></a></p>



<p><a href="https://www.hollywoodreporter.com/business/business-news/disney-apple-deal-1235559416/" target="_blank" rel="noreferrer noopener">THE HOLLYWOOD REPORTER<strong>A Disney Sale to Apple? Don&#8217;t Count It Out This Time</strong></a></p>


Disney plus : Illustration

Disney Plus Subscribers Dwindle — But Streaming Unit Beats Estimates


<p>Disney+, which last year added a content advisory for racism on several older films streaming on the platform, has added a stronger warning to films including <em>Dumbo</em> and <em>The Jungle Book</em>, following some viewers’ criticism last year that the platform’s initial messaging was not strong enough.</p>



<h4 class="wp-block-heading">KEY FACTS</h4>



<p>Disney+ has rolled out a new message on a handful of classic cartoons, which reads: “This program includes negative depictions and/or mistreatment of people or cultures. . . . These stereotypes were wrong then and are wrong now.”</p>



<p>Films with the new disclaimer include&nbsp;<em>The Aristocats</em>&nbsp;and&nbsp;<em>The Lady and the Tramp</em>, which both depict negative stereotypes of Asian people, and&nbsp;<em>Peter Pan</em>, which contains racial slurs against Native American and First Nation people.</p>



<p>The initial disclaimer out last year read: “This program is presented as originally created. It may contain outdated cultural depictions.”</p>



<h4 class="wp-block-heading">KEY BACKGROUND</h4>



<p>As a growing number of entertainment streaming services breathe new life into old classics, the need to contextualize negative stereotypes and racist depictions that were widely accepted decades ago has become apparent. Disney+ isn’t the first streaming service to roll out this measure in the midst of a wider reckoning in the entertainment world following widespread antiracism protests this year. In June, a then-new HBO Max temporarily&nbsp;<a href="https://www.forbes.com/sites/isabeltogoh/2020/06/10/gone-with-the-wind-temporarily-removed-from-hbo-max-in-wake-of-george-floyd-protests/#770baabcef11">pulled down</a>&nbsp;1939’s&nbsp;<em>Gone With The Wind</em>, saying it could not leave the film, often criticized for its glorification of slavery, on the platform without “explanation or denouncement” of those negative depictions. The movie&nbsp;<a href="https://www.forbes.com/sites/isabeltogoh/2020/06/10/gone-with-the-wind-temporarily-removed-from-hbo-max-in-wake-of-george-floyd-protests/#770baabcef11">returned</a>&nbsp;two weeks later with a warning about the “horrors of slavery.”</p>



<h4 class="wp-block-heading">TANGENT</h4>



<p>Some viewers pushed Disney to make its disclaimer more&nbsp;<a href="https://www.theverge.com/2019/11/13/20963014/disney-plus-racism-cultural-disclaimer-dumbo-song-of-the-south-warner-bros-tom-jerry" target="_blank" rel="noreferrer noopener">explicit&nbsp;</a>like rival studio Warner Bros.’ “wrong then and wrong today” label when it launched the warnings in November.</p>



<h4 class="wp-block-heading">BIG NUMBER</h4>



<p><a href="https://deadline.com/2020/08/disney-nears-5-year-streaming-goal-in-first-eight-months-with-57-5m-subscribers-1203003841/" target="_blank" rel="noreferrer noopener"><strong>60.5 million</strong></a><strong>.</strong>&nbsp;That’s how many subscribers Disney+ counts globally, CEO Bob Chapek said in August.</p>



<h4 class="wp-block-heading">FURTHER READING</h4>



<p><a href="https://www.forbes.com/sites/isabeltogoh/2020/06/25/gone-with-the-wind-is-back-on-hbo-max-with-a-warning-about-horrors-of-slavery/">‘Gone With The Wind’ Is Back On HBO Max With A Warning About The ‘Horrors Of Slavery’</a>&nbsp;(Forbes)</p>



<p><a rel="noreferrer noopener" href="https://www.theverge.com/2019/11/13/20963014/disney-plus-racism-cultural-disclaimer-dumbo-song-of-the-south-warner-bros-tom-jerry" target="_blank">Disney+ warns viewers about past racism, but not as well as Warner Bros.</a> (The Verge)</p>



<p><em>-By Isabel Togoh, Forbes Staff</em></p>


Tag: Disney Plus

FORBES AFRICA SOCIAL MEDIA

Disney Vs. Musk: Right-Wing X Users Push For Disney+ Cancellations As Disney Pulls Ads

Disney Plus Subscribers Dwindle — But Streaming Unit Beats Estimates

‘Wrong Then, Wrong Now’: Disney+ Strengthens Disclaimer About Racism In Older Films Including Dumbo, Peter Pan