Disney’s Brand Image Faces Sharp Decline Amid Kimmel Controversy
Disney’s reputation has taken a significant hit, reaching multi-year lows in public sentiment across both major political parties. The decline follows the company’s controversial decision to temporarily pull comedian Jimmy Kimmel’s late-night show from the air after his remarks about conservative activist Charlie Kirk sparked backlash. According to investment bank Jefferies, which analyzed data from Morning Consult, the brand perception of Disney and its streaming service Disney+ dropped to levels unseen since before 2024. Democrats, who historically viewed Disney more favorably, showed a steeper decline in positive sentiment than Republicans, though both groups registered substantial decreases.
The Jimmy Kimmel Incident and Its Fallout
The controversy began when ABC, Disney’s broadcast network, pulled “Jimmy Kimmel Live!” temporarily in response to Kimmel’s comments about Charlie Kirk. This action came after Federal Communications Commission Chair Brendan Carr suggested that ABC’s broadcast license might be at risk. Additionally, local ABC affiliates owned by Nexstar Media Group and Sinclair preempted the show before Disney’s corporate decision. This sequence of events positioned Disney at the center of a cultural and political flashpoint, generating criticism from multiple sides. Some accused Disney of succumbing to political pressure from the Trump administration rather than defending free speech principles, while others expressed disapproval of Kimmel’s original remarks.
“The last two weeks for Disney have been as eventful to say the least, and have been equally controversial,” said Jefferies analyst James Heaney.
Brand Sentiment Metrics Reveal Deepening Divide
Jefferies’ analysis highlights a near-even split between positive and negative sentiment toward Disney among Democrats, Republicans, and the general consumer base, with readings plunging to their lowest point in over two years. The sentiment deterioration was more pronounced among Democrats, signaling a significant shift in their perception of the company. Despite this, Disney’s overall brand awareness reached its highest level in two years. However, the increase in awareness for Disney+ was comparatively modest, which analyst Heaney interpreted as a potentially stabilizing factor for the streaming platform’s subscriber base.
Disney+ Price Hike Adds Pressure
Compounding the public relations challenges, Disney announced a $2 to $3 price increase for many Disney+ subscription tiers, effective October 21, 2025. This change has contributed to the overall negative sentiment surrounding the brand and raised concerns about potential subscriber churn. However, Heaney noted that the impact on Disney+ may be less severe than on the broader Disney brand, suggesting the price increase could be absorbed without significant subscriber losses.
Stock Market Reaction and Analyst Outlook
Disney’s shares have declined approximately 6% over the past month, erasing gains made earlier in 2025. Despite the recent volatility, Jefferies reaffirmed a buy rating on the stock with a price target of $144, implying nearly 30% upside from the closing price prior to the report. The analyst emphasized that while the controversy has been a public relations setback, the company’s underlying business fundamentals and brand awareness remain strong.
FinOracleAI — Market View
The recent controversy surrounding Jimmy Kimmel and Disney’s response has triggered a notable decline in brand sentiment across the political spectrum, highlighting the risks media companies face when navigating politically charged content.
- Opportunities: Strong brand awareness and loyal Disney+ subscriber base could mitigate churn despite negative sentiment.
- Risks: Continued political polarization may prolong reputational damage and affect advertising revenues.
- Price Sensitivity: Disney+ price increase risks accelerating subscriber cancellations if negative sentiment persists.
- Regulatory Scrutiny: FCC involvement signals potential for increased oversight affecting content decisions.
Impact: While the brand sentiment decline poses a short-term challenge, Disney’s diversified portfolio and strong market position support a cautiously optimistic outlook.
