Disney Subscription Crisis and Rising Objections

Disney (DIS) is facing a wave of cancellations. New data shows that after the company suspended the famous comedian Jimmy Kimmel’s late-night show, approximately 3 million subscribers left Disney+ and Hulu. The number for Hulu has reached 4.1 million, revealing that cancellations have surged to levels not seen in recent times.

The cancellation rate for Disney+ is recorded at 8%, while for Hulu it stands at 10%. However, Disney’s streaming service is still experiencing growth. In September, Disney+ gained 2.2 million new sign-ups, and Hulu also acquired 2.1 million new subscribers, indicating that despite some consumers leaving, new subscribers are still being gained.

The wave of cancellations seems to be linked to reactions to Disney’s decision to suspend Kimmel. Many users on social media expressed anger over this situation. Some criticized the increase in subscription prices, while others reminded that cultural issues can turn into business problems for large companies.

Despite the subscriber losses, Disney shares rose on Tuesday, closing at around $113. Investors are focused on the company’s upcoming earnings report and whether the mainstream streaming business will stabilize in the coming months.