Jimmy Kimmel’s talk show has made a comeback after being suspended by two ABC affiliates, leading to significant financial losses for Disney.
The controversy began when Jimmy Kimmel Live! aired a segment where Kimmel made comments regarding the assassination of Charlie Kirk and seemingly mocked Donald Trump’s response to the incident.
Following his monologue, ABC suspended the show indefinitely, sparking widespread criticism online. Many viewed the suspension as a form of censorship, conflicting with the principle of free speech in the US.
Soon after, Disney confirmed the return of Kimmel’s show but not before The Walt Disney Co. suffered a substantial financial setback ‘overnight’.
Despite Kimmel’s return, Sinclair Inc. and Nexstar, both affiliates of ABC, have decided not to broadcast Jimmy Kimmel Live!, affecting about a quarter of ABC’s audience reach.
Disney, which owns ABC, faced further challenges as a result of the suspension. Market Watch noted that Disney’s stock value dropped by 2.31 percent in the wake of Kimmel’s cancellation. Al Jazeera also reported that Walt Disney Co. lost billions in stock market value ‘overnight’ following the news of the affiliate strike.
In response, Disney announced price increases for its streaming service bundles, including Disney+, Hulu, and ESPN channels, with changes taking effect from October 21. Subscribers began receiving notifications of these changes on Tuesday (September 23).
These price adjustments follow hints of upcoming increases mentioned in the company’s third-quarter earnings call.
Other bundles for Disney+, Hulu, and ESPN will also see changes in pricing. This marks the third price hike in three years and comes at a challenging time for the company.
The controversy surrounding Kimmel could lead to a significant viewership decline for ABC, impacting Disney’s revenue according to a brand expert and publicist.
Crystal Gorges told FOX Business that ABC and Disney are under scrutiny, with the suspension potentially perceived as political compliance. This could alienate loyal viewers who may view it as censorship.
“Loyal viewers who tune in regularly or subscribe to Disney/ABC bundles might feel silenced,” Gorges said. “This sense of alienation can evolve into organized opposition, social media campaigns, or even subscription cancellations.”
Gorges also noted that the ‘long-term monetary risk’ stems from perceptions of yielding to external political pressures.
UNILAD has reached out to Disney for comment.