The recent suspension of Jimmy Kimmel Live! has led to a significant increase in cancellations for both Disney+ and Hulu, according to new data from subscription analytics firm Antenna. The monthly churn rate for Disney+ escalated from four percent in August to eight percent in September, coinciding with Kimmel’s suspension after his controversial monologue regarding far-right commentator Charlie Kirk. Similarly, Hulu’s churn rate doubled from five percent to ten percent during the same period.
The backlash against Disney and its streaming platforms intensified as Kimmel’s suspension triggered calls for a boycott. Notable figures such as Tatiana Maslany and Cynthia Nixon publicly supported the movement. Reports indicate that Disney faced a loss of over 1.7 million subscribers across its platforms, including Disney+, Hulu, and ESPN, between the announcement of Kimmel’s suspension and his subsequent return to the air.
Subscriber Trends Highlight Impact of Controversy
The increase in subscriber churn during this period is particularly striking, given that churn rates typically remain stable month-to-month. A source from Disney, who spoke with The Hollywood Reporter, mentioned that Antenna’s figures appear to exceed Disney’s internal data. This discrepancy raises questions about how Antenna accounts for subscription plan upgrades and downgrades when calculating churn.
Moreover, Kimmel’s suspension was not the sole factor influencing subscriber decisions. Shortly after Disney announced his return, the company revealed impending price hikes for both Disney+ and Hulu. These increases, set to take effect on October 21, 2023, will position the ad-supported and most basic ad-free tiers of both services as the most expensive options among major streaming competitors.
The dual impact of Kimmel’s suspension and the rising costs may continue to affect subscriber numbers as customers reassess their streaming service choices in light of these developments. As Disney navigates these challenges, the outcomes of these shifts will be closely monitored by industry analysts and consumers alike.
