What's Happening?
The suspension of Jimmy Kimmel's late-night show by ABC led to a surge in cancellations of Disney+ and Hulu subscriptions. However, both streaming services also experienced an increase in new sign-ups
during September. The cancellation rate for Disney+ doubled to 8%, while Hulu's rate increased to 10%. Despite the cancellations, Disney+ gained 2.18 million new subscribers, and Hulu added 2.11 million. The suspension followed controversial remarks made by Kimmel, leading to boycotts by major ABC affiliates. Disney plans to stop reporting subscriber numbers for its streaming services, citing the metric's decreasing relevance.
Why It's Important?
The mixed response to the suspension of Jimmy Kimmel's show underscores the complex dynamics of consumer behavior in the streaming industry. While some consumers canceled their subscriptions in protest, others signed up, possibly attracted by the controversy or other content offerings. This situation highlights the challenges streaming services face in managing public relations and subscriber retention. The decision by Disney to stop reporting subscriber numbers reflects a shift in how streaming success is measured, focusing more on revenue and engagement metrics.
What's Next?
Disney is set to release its September 2025 results in November, which will provide further insights into the impact of the Kimmel suspension on its streaming services. The company will also implement price increases across its streaming plans, which could influence future subscription trends. As Disney stops reporting subscriber numbers, industry analysts and investors will need to rely on alternative metrics to assess the performance of Disney+ and Hulu.
