A breakdown of the brand damage

The indefinite suspension of “Jimmy Kimmel Live!” by ABC, a subsidiary of Disney, has led to a significant brand damage issue, particularly for Disney+. The decision, which came after pressure from the Federal Communications Commission (FCC) chair and TV station owners, has been widely condemned as an act of censorship and has prompted a call for boycotts.
Here’s a breakdown of the brand damage:

1. Public Boycott and Subscriber Cancellations:

• Following the suspension, there have been widespread calls to boycott ABC and its parent company, Disney.
• Social media users, including some Disney+ subscribers, have posted screenshots of canceled subscriptions in protest.
• There are reports of internal “freakout” at Disney+ due to concerns about subscription cancellations and the potential for the boycott to spread to other Disney properties, such as its theme parks and cruise lines.
• Protesters have gathered outside Disney’s Burbank studios to voice their opposition to the decision.

1. Condemnation from Public Figures and Media:

• The move has been met with condemnation from a wide range of public figures, including politicians and celebrities.
• Former President Barack Obama and various Democratic lawmakers have criticized the suspension as a dangerous form of government coercion and an attack on free speech.
• Fellow late-night hosts, including Stephen Colbert, Jimmy Fallon, and Jon Stewart, have rallied behind Kimmel, characterizing the suspension as a “blatant assault on freedom of speech.”
• Former late-night host David Letterman called the situation “managed media” and “ridiculous.”

1. Financial and Reputational Concerns:

• The suspension of “Jimmy Kimmel Live!” could result in a significant loss of advertising revenue for ABC, as the show brought in close to $70 million in ad revenue year-to-date from over 200 brands.
• The decision has been criticized by some within the industry as a public relations failure, with some communications professionals suggesting it has “worsened reputations for everyone at the network.”
• There are questions about whether Disney will be able to regain public trust and avoid a lasting negative impact on its brand.
  While the firing has been praised by some, including President Donald Trump and other conservatives, the prevailing public narrative and media reaction has been one of outrage and concern over free speech, which has directly led to brand damage for Disney and its streaming service.