The Walt Disney Company admitted that their environmental and social goals differ widely between their actual consumers and that this gulf has created a business risk to the company’s reputation and brands.
Ahsoka Tano (Rosario Dawson) with purrgil in a scene from Lucasfilm’s STAR WARS: AHSOKA, exclusively on Disney+. ©2023 Lucasfilm Ltd. & TM. All Rights Reserved.
In The Walt Disney Company’s Form 10-K filed with the Securities and Exchange Commission, the company outlines a number of risk factors it is facing.
One of the bullet points in this section states, “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.”
Underneath the bullet point, the company states, “Our businesses create entertainment, travel and consumer products whose success depends substantially on consumer tastes and preferences that change in often unpredictable ways. The success of our businesses depends on our ability to consistently create compelling content, which may be distributed, among other ways, through broadcast, cable, theaters, internet or mobile technology, and used in theme park attractions, hotels and other resort facilities and travel experiences and consumer products.”
Mickey walks down Main Street USA at Disneyland. (Credit: Mortimer Productions)
“Such distribution must meet the changing preferences of the broad consumer market and respond to competition from an expanding array of choices facilitated by technological developments in the delivery of content. The success of our theme parks, resorts, cruise ships and experiences, as well as our theatrical releases, depends on demand for public or out-of-home entertainment experiences,” The Walt Disney Company continues. “Demand for certain out-of-home entertainment experiences, such as theater-going to watch movies, has not returned to pre-pandemic levels. In addition, many of our businesses increasingly depend on acceptance of our offerings and products by consumers outside the U.S.”
It adds, “The success of our businesses therefore depends on our ability to successfully predict and adapt to changing consumer tastes and preferences outside as well as inside the U.S. Moreover, we must often invest substantial amounts in content production and acquisition, acquisition of sports rights, launch of new sports-related studio programming, theme park attractions, cruise ships or hotels and other facilities or customer facing platforms before we now the extent to which these products will earn consumer acceptance, and these products may be introduced into a significantly different market or economic or social climate from the one we anticipated at the time of the investment decisions.”
The Wonderful Summer of Mickey Mouse” finds Mickey Mouse and his friends each recalling the wild events leading up to the Annual Summer Fireworks Spectacular from their point-of-view. Coming to Disney+ July 8
They then admitted, “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.”
The company then conceded, “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.”
They concluded the section, “Consumer tastes and preferences impact, among other items, revenue from advertising sales (which are based in part on ratings for the programs in which advertisements air), affiliate fees, subscription fees, theatrical film receipts, the license of rights to other distributors, theme park admissions, hotel room charges and merchandise, food and beverage sales, sales of licensed consumer products or sales of our other consumer products and services.”
NEW YORK, NEW YORK – NOVEMBER 10: Brie Larson attends THE MARVELS Movie Theater Pop-In on November 10, 2023 in New York City. (Photo by Jason Mendez/Getty Images for Disney)
This gulf was on full display last February when the company embroiled itself in a moral and political debate with the state of Florida. The company decided to oppose a bill preventing the grooming of children in gender identity and sexual orientation in grades kindergarten through third grade.
The Parental Rights in Education bill specifically stated it ““prohibits school district personnel from discouraging or prohibiting parental notification & involvement in critical decisions affecting student’s mental, emotional, or physical well-being; prohibits classroom discussion about sexual orientation or gender identity in certain grade levels; requires school districts to notify parents of healthcare services; authorizes parent to bring action against school district to obtain declaratory judgment; provides for additional award of injunctive relief, damages, & reasonable attorney fees & court costs to certain parents.”
It also noted that “classroom instruction by school personnel or third parties on sexual orientation or gender identity may not occur in kindergarten through grade 3 or in a manner that is not age-appropriate or developmentally appropriate for students in accordance with state standards.”
MAKE UP BOY in THE PROUD FAMILY: LOUDER AND PROUDER – “Bad Influencer” (Disney)
At the time, Bob Iger reacted to the legislation stating, “I’m with the President on this! If passed, this bill will put vulnerable, young LGBTQ people in jeopardy.”
I’m with the President on this! If passed, this bill will put vulnerable, young LGBTQ people in jeopardy. https://t.co/fJZBzre4yM
— Robert Iger (@RobertIger) February 25, 2022
In an initial response to this bill, former CEO Bob Chapek indicated the company would stay out of the public debate. However, he indicated the company would use its content programming to work around the bill and others like it that might pop up in other states.
In an email obtained by Blog Mickey, Chapek stated, “Because this struggle is much bigger than any one bill in any one state, I believe the best way for our company to bring about lasting change is through the inspiring content we produce, the welcoming culture we create, and the diverse community organizations we support.”
He explained, “There’s a reason content is at the top of this list. For nearly a century, our company’s stories have opened minds, inspired dreams, shown the world both as it is and how we wish it could be, and now more than ever before, represent the incredible diversity of our society. We are telling important stories, raising voices, and I believe, changing hearts and minds.”
After listing off a number of movies, he then declared, “I firmly believe that our ability to tell such stories-and have them received with open eyes, ears, and hearts -would be diminished if our company were to become a political football in any debate.”
“Powerful content that changes hearts and minds only springs from inclusive cultures, which not only attract and retain the best and most diverse talent, but also give those employees the freedom to bring forth ideas that reflect their lives and experiences. We must work together to ensure Disney always remains such a place,” Chapek asserted.
LOS ANGELES, CALIFORNIA – JUNE 23: (L-R) Natalie Portman and Bob Chapek, Chief Executive Officer of Disney attend the Thor: Love and Thunder World Premiere at the El Capitan Theatre in [Hollywood], California on June 23, 2022. (Photo by Charley Gallay/Getty Images for Disney)
He stated in an email that was obtained by Variety, “It is clear that this is not just an issue about a bill in Florida, but instead yet another challenge to basic human rights. You needed me to be a stronger ally in the fight for equal rights and I let you down. I am sorry.”
Chapek continued, “Our employees see the power of this great company as an opportunity to do good. I agree. Yes, we need to use our influence to promote that good by telling inclusive stories, but also by standing up for the rights of all.”
Next, he declared, “Starting immediately, we are increasing our support for advocacy groups to combat similar legislation in other states. We are hard at work creating a new framework for our political giving that will ensure our advocacy better reflects our values. And today, we are pausing all political donations in the state of Florida pending this review.”
Finally, he asserted, “I truly believe we are an infinitely better and stronger company because of our LGBTQ+ community. I missed the mark in this case but am an ally you can count on—and I will be an outspoken champion for the protections, visibility, and opportunity you deserve.”
LOS ANGELES, CALIFORNIA – JUNE 23: (L-R) Christine McCarthy, CFO of The Walt Disney Company, Bob Chapek, Chief Executive Officer of Disney, Kareem Daniel, Chairman of Disney Media and Entertainment Distribution and Louis D’Esposito attend the Thor: Love and Thunder World Premiere at the El Capitan Theatre in [Hollywood], California on June 23, 2022. (Photo by Charley Gallay/Getty Images for Disney)
After Chapek was replaced as CEO by Bob Iger, Iger made it clear he would be continuing Chapek’s policy, but wanted to make it not as public.
He said, “I think there’s a misperception here about what politics is. I think that some of the subjects that have proven to be ‘controversial’ as it relates to Disney have been branded political, and I don’t necessarily believe they are. I don’t think that when you are telling stories and attempting to be a good citizen of the world, that that’s political. It’s just not how I view it.”
“Do I like the company being embroiled in controversy? Of course not, it can be distracting, and it can have a negative impact on the company. And to the extent that I can work to quiet things down, I’m going to do that. But I think it’s important to put in perspective what some of these subjects are and not just simply brand them as political.
EXCLUSIVE: I have obtained video from returning Disney CEO Bob Iger’s first town hall with employees, in which he signals that he will work to “quiet things down” politically and move toward neutrality in the culture war.https://t.co/ZBGdHhxFVS pic.twitter.com/ZbMCZN4MlG
— Christopher F. Rufo ⚔️ (@realchrisrufo) November 29, 2022
When asked specifically about the Parental Rights in Education bill, Iger said, “Well, first of all, our LGBTQ employees are very important to us and we care deeply about them. That is a given. Secondly, this company has been telling stories for a hundred years, and those stories have had a meaningful, positive impact on the world. And one of the reasons that they’ve had a meaningful, positive impact is one of our core values is inclusion, acceptance, and tolerance. And we can’t lose that. We just can’t lose that.”
“I think about Black Panther and the impact that had on the world, or a film like Coco. I could go on and on. How we actually change the world for the good must continue,” he said.
Iger continued, “When you tell stories, there’s a delicate balance. You’re talking to an audience, but it’s also important to listen. It’s important to have respect for the people that you’re serving and not have disdain for them.”
“That said, we’re not going to make everyone happy all the time, and we’re not going to try to,” he stated. “We’re certainly not going to lessen our core values in order to make everyone happy all the time. So, it’s complicated, and there’s a balance.”
“At one point, I said, ‘We do what we believe is right’, and then someone criticized me, ‘Who are you to say what’s right?’ When you’re in a job like mine, or you are responsible for storytelling, you get paid to have a sense for what is right. Not everybody will agree with you, that’s just not the way the world is these days, but that doesn’t mean you should stop trying to do the right thing,” he declared.
In response to the so-called “Don’t Say Gay” legislation, Iger said Disney would still promote “inclusion,” but suggested that the company must strike a “delicate balance” and “listen to [its] audience” and “have respect for the people that [it’s] serving.” This is a retreat. pic.twitter.com/bZBnQdm616
— Christopher F. Rufo ⚔️ (@realchrisrufo) November 29, 2022
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Since Iger’s return Disney has partnered with a man who wears young girls clothes in order to sell merchandise.
@disneystyle a minnie moment 🫶 #mickeyfriendsstaytrue #disney100 #grwm #ootd #minniemouse #disneyoutfits #disneycosplay ♬ original sound – Disney Style
They also have numerous male employees in drag greeting young children at the Bibbidi Bobbidi Boutique at Disneyland in Anaheim, California. One video showed a man named Nick greeting a young girl as she entered the shop.
@kourtnifaber A dream is a wish your heart makes, when you’re fast asleep 👑 ✨ #disneyland #bibbidibobbidiboutique #corememory ♬ original sound – Kourtni
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