Disney has warned its investors that the company’s products and political views may not align with what viewers want – and risk harming its bottom line.
In a public financial filing for the fiscal quarter ending in September, the corporation acknowledged the risks it is taking ‘relating to misalignment with public and consumer tastes and preferences for entertainment.’
Recent struggles of Disney
Disney has struggled of late to successfully pitch its costly films to audiences, losing a reported $1billion on its last four high-profile releases.
Most recently, the House of Mouse delayed the release of its $330 million Snow White reboot by a year after star Rachel Zegler sparked fury with a woke rant against the 1937 original and vowed that the remake would be more progressive.
The company’s SEC filing, which is submitted so that investors, analysts, and regulators have a clear idea of how the company is performing, said Disney’s success ‘depends on our ability to consistently create compelling content.’
When creators ‘do not achieve sufficient consumer acceptance,’ profits fall, the report warned.
Further, consumers’ perceptions of our position on matters of public interest, including our efforts to achieve certain of our environmental and social goals, often differ widely and present risks to our reputation and brand,’ it added.
The company’s involvement in cultural issues
Disney has been embroiled in several political controversies in recent years that have illustrated to some parents and consumers that the brand’s values may no longer align with their own.
Notably, the company took a strong position against Florida Governor Ron DeSantis’ Parents’ ‘Don’t Say Gay’ bill – actually called the Parents’ Bill of Rights – that bans sexual and gender curricula for public elementary school students.
The company has since continued releasing agenda-driven content.