Disney Faces Subscription Losses After Jimmy Kimmel Controversy

Disney’s streaming services experienced a significant decline in subscriptions amidst the controversy surrounding late-night host Jimmy Kimmel. The network faced backlash after suspending his show, Jimmy Kimmel Live!, for several days, a decision that reportedly led to over 1.7 million cancellations between September 17 and September 23, 2025.

The situation escalated after Kimmel’s monologue on September 15, in which he criticized former President Donald Trump in the context of the death of conservative activist Charlie Kirk. Following the remarks, Brendan Carr, Chairman of the Federal Communications Commission (FCC), condemned Kimmel’s comments and hinted at regulatory consequences for ABC, a Disney-owned network. This prompted ABC’s affiliates, including Nexstar and Sinclair, to preempt Kimmel’s show.

The backlash was immediate, with social media users calling for a boycott of Disney, and a cohort of 400 celebrities signing an open letter advocating for free speech. After negotiations, Kimmel’s show returned to the air on September 23, but the damage to Disney’s subscriber base had already begun.

Reports indicate that the cancellations encompassed subscriptions to Disney+, Hulu, and ESPN, with a notable spike of 436% above the typical churn rate during the suspension. According to journalist Marisa Kabas, the total included more than one million cancellations by September 18, which suggested a concerning trend for Disney.

Financial Implications for Disney

The financial ramifications of these cancellations are considerable, albeit modest in the context of Disney’s overall valuation of approximately $206.4 billion. If the cancellations are evenly distributed across Disney’s platforms, the company could be looking at a potential loss of between $12 million and $25.5 million in monthly revenue. This estimate reflects an average revenue per user ranging from $7 to $15.

While the financial impact may seem minor compared to Disney’s size, it raises concerns among shareholders. Such sudden fluctuations in subscriber numbers can draw scrutiny, potentially unsettling investors and affecting the company’s stock performance. The price hike announced coinciding with the controversy may further complicate the situation, leading to additional dissatisfaction among consumers.

Amid these developments, a group of investors, including representatives from the American Federation of Teachers and Reporters Without Borders, has demanded transparency regarding the decision to suspend Kimmel’s show. They sent a letter to Disney CEO Bob Iger, urging the company to disclose details surrounding the suspension, citing significant declines in stock value linked to the controversy.

Their letter expressed concerns that the suspension appeared to be a reaction to pressure from the FCC and ABC affiliates, which could signal a troubling trend of media censorship. The investors have requested documentation related to Kimmel’s suspension, stating that they may pursue legal action if their demands are not met.

Kimmel’s Ratings Surge Amidst Controversy

Despite the behind-the-scenes turmoil, Jimmy Kimmel Live! experienced a ratings spike upon its return. The episode aired on September 29, 2025, featuring guests such as Ryan Reynolds and comedian Josh Johnson, drawing substantial viewership. Nielsen reports indicated that 6.26 million viewers tuned in for the first episode back after the suspension, although that number dropped to 2.3 million by the following Thursday.

These figures remain significantly higher than the show’s average viewership of 1.42 million between 2024 and 2025. Online engagement has also surged, with Kimmel’s recent monologue garnering nearly one million views within hours of its upload.

As Disney navigates the fallout from this controversy, the implications for the company’s brand and subscriber loyalty remain to be seen. The intersection of media, politics, and entertainment continues to evolve, and the decisions made by Disney in the coming weeks will be closely monitored by both consumers and investors alike.