Censorship Backlash: How a Single Suspension Sparked a Wave of Disney+ and Hulu Cancellations

In a surprising turn of events, Disney+ and Hulu experienced a dramatic spike in cancellation rates after the temporary suspension of TV host Jimmy Kimmel in September 2023. This surge, documented by analytics firm Antenna, saw Disney+’s churn rate double from an average of 4% to 8%, translating to approximately three million cancellations. Meanwhile, Hulu’s cancellations surpassed 10%, resulting in over four million lost subscribers.

The controversy began when Kimmel was suspended after making comments regarding the shooting of Charlie Kirk, following pressure from federal regulators. His remarks were deemed controversial, leading to debates over free speech and censorship. Within a week, amid backlash from viewers and public figures alike, Kimmel was reinstated by ABC, the network airing his show.

Disney’s decision to suspend Kimmel was made on September 17, following comments he made about the ‘Maga gang’ attempting to reframe the narrative surrounding the shooting. This action came shortly after Brendan Carr, the FCC chair, threatened to revoke ABC’s broadcast license, prompting outrage from many sectors, including the ACLU and various Hollywood creatives who supported Kimmel. Critics labeled the suspension as a violation of the First Amendment and called for consumers to boycott Disney’s services in protest.

The recent data from Antenna indicates the potential repercussions for Disney, revealing millions of lost subscribers due to this scandal. In contrast, Netflix maintained a stable churn rate of 2% during the same period. However, it remains uncertain if Kimmel’s suspension was solely responsible for the spike in cancellations, as it coincided with significant announcements regarding subscription price hikes at Disney. Despite the notable cancellations, the companies saw an increase in new sign-ups in September, somewhat balancing the losses.

Neither Disney nor Hulu has officially commented on the situation, leaving analysts speculating about the long-term implications of this incident on the company’s streaming services.