‘Cancel Disney Plus,’ ‘Cancel Hulu’ Become Trending Topics After Elon Musk Battle With Media Company: Should Disney Be Worried? – Walt Disney (NYSE:DIS)

Disney’s Decision to Suspend Advertising on Twitter May Backfire

In a recent move, media giant The Walt Disney Company announced that it would be suspending its advertising on social media platform Twitter, now known as X. The decision comes after Twitter owner Elon Musk’s interaction with an antisemitic post, which drew criticism from various companies, leading them to pause their ads on the platform. However, this move could potentially have a negative impact on Disney itself.

Disney CEO Bob Iger stood behind the decision to suspend advertising on Twitter, stating that the association with Elon Musk’s controversial comments was not a positive one for the company. Iger also emphasized that while it is reasonable for CEOs to express their opinions publicly, it can sometimes have negative consequences.

Speaking at the same event, Elon Musk apologized for his interaction with the antisemitic post but also accused companies that are pulling advertising on Twitter of blackmailing him. He made it clear that he did not want them to advertise and suggested they go elsewhere.

While companies are free to make their own decisions regarding advertising, consumers also have the freedom to cancel their streaming subscriptions with media companies like Disney. This situation was evident as terms like “cancel Disney Plus” and “cancel Hulu” trended on Twitter, with increased interest on Google Trends.

Fans of Elon Musk expressed their support for him by urging others to cancel their Disney streaming subscriptions, leading to a significant backlash against the company. Twitter users shared instructions on how to cancel their Disney+ and Hulu plans, with one post gaining nearly one million views. A poll conducted by a financial outlet indicated that 68.5% of respondents would be canceling their Disney streaming subscriptions.

This boycott of Disney’s streaming services comes at a time when the company’s advertising ban on Twitter could backfire. The impact of the boycott, coupled with a lack of new content on the platform, might result in a significant number of cancellations. Tech blog Tom’s Guide highlighted the sparse December lineup on Disney+, stating that it offers less holiday-themed content compared to other platforms, which typically see increased interest during the holiday season.

It is crucial for investors to monitor the first-quarter results of Disney+ streaming figures, as the combination of a smaller lineup of new releases and calls for a boycott could have a significant impact on the company’s streaming business.

In terms of stock performance, Disney shares closed slightly lower on Friday, reflecting the potential concerns surrounding the company’s decision to suspend advertising on Twitter.

In conclusion, while Disney’s decision to suspend advertising on Twitter might seem like a way to distance itself from controversy, it could have unintended consequences. The boycott of Disney’s streaming services and the lack of new content on the platform during the holiday season could lead to a significant drop in subscribers and potentially impact the company’s streaming business. Investors should closely monitor the situation to assess the long-term implications for Disney.