Disney's Trust Issue with America: A Deep Dive

The Armchair Analysts of Disney

There are numerous YouTube commentators, such as WDW Pro, Valliant Renegade, and ClownfishTV, who keep a close eye on the cultural, corporate, programming, and financial maneuvers of The Walt Disney Company. Once considered one of America's most trusted and iconic companies, Disney's reputation has seen a significant decline.

The Downfall of Disney's Trust

Disney's reputation took a hit following its successful fight to keep activist investor Nelson Peltz off its Board of Directors in April 2024. Following this, Peltz liquidated his Disney holdings, walking away with more than $1 billion. During Disney's quarterly earnings call on May 7, 2024, led by CEO Bob Iger, the company's stock plummeted almost 10%, resulting in a $20 billion loss in its market cap. Despite some recovery, the stock remains well below its 52-week high and all-time highest closing price. There is speculation that if the stock falls below $90 a share, Peltz might make another bid for board seats or even attempt to oust Iger.

Disney's Woke Culture and Its Impact

Disney is known for its progressive stance on cultural and social issues, particularly in relation to Diversity, Equity, and Inclusion (DEI). However, this has played a significant role in the loss of trust from American parents. The company's push for LGBTQ messages in its programming has led to a loss of trust from many parents, affecting Disney parks, feature films, animation, and especially the Disney Channel.

The Struggles of Disney's Animation and Film Franchises

Disney has lost its long-held leadership in animation to NBCUniversal's Dreamworks Animation studio. Its feature films, with their massive production budgets, have been a disaster. The company has also ruined two successful film franchises it acquired during Iger's first term as CEO: Star Wars and Indiana Jones. The delayed live-action remake of its 1937 Snow White classic animated film is also facing issues, largely due to controversial comments from its star, Rachel Ziegler.

Disney's Financial Woes

Aside from its progressive agenda, Disney is also grappling with financial issues. Theme park attendance is stagnating, with waiting times at popular attractions at its theme parks hitting decade lows. Its forced acquisition of the Hulu streaming service, shared with Comcast, has been a disaster. The company is struggling to integrate Hulu into its Disney+ streaming service. This forced payout is now funding Comcast to bid for sporting rights, directly competing with one of Disney's last crown jewels, ESPN.

Disney's Lost Trust with Parents

Disney is no longer viewed as a trustworthy babysitter by American parents. The company's current values diverge significantly from those of its founder, Walt Disney. Parents trying to raise their kids with traditional values no longer trust Disney. Until there is a significant change in leadership and a return to its core mission of entertainment, this trust is unlikely to be regained.

Conclusion

Disney's decision to prioritize ideology over entertainment has damaged a beloved American institution. The company has been on a downward trajectory since Bob Iger first became CEO in 2005. The situation worsened during Bob Chapek's short reign from 2020 to 2021 and accelerated after Iger returned to the CEO role in 2022. The Walt Disney Company is in need of new leadership and a refocused mission if it hopes to recover.

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