Analyst note reveals Disney CEO’s plan to pacify culture wars

Analyst note reveals Disney CEO’s plan to pacify culture wars

CompaniesWalt Disney CoFollowWalt Disney StudiosFollowSept 20 (Reuters) – Walt Disney ‌(DIS.N) CEO Bob Iger told investors ⁣the‍ company will‌ “quiet the noise” in ​a culture⁤ war that has pitted social conservatives against the global media and entertainment conglomerate, according to an analyst⁢ note on Wednesday.
Iger’s brief statement, included ⁢in an‍ analyst report from Needham media⁤ analyst Laura Martin, was part ⁤of an investors’ ⁣presentation on Tuesday ​at Walt Disney ⁣World Resort in ​Orlando,⁤ Florida,‍ in which the CEO also announced Disney will double ⁤its investment in​ theme parks and cruise ships over⁣ the next decade.
Disney is struggling to make its⁢ streaming business profitable,‍ improve the quality of ‍its films, position its⁤ flagship sports brand, ESPN, to stream directly to consumers, and potentially ‌shed its television networks. In its⁢ most recent quarter, the company beat Wall ⁣Street’s profit expectations but fell short on revenue.
Disney⁢ declined comment.
The ⁤entertainment company was⁣ thrust at the center ‍of the nation’s culture wars in 2022, ‍when‌ it publicly criticized Florida legislation⁣ restricting classroom discussion of sexual orientation and gender identity. Governor Ron DeSantis responded by campaigning against “woke Disney,” ⁢and working with the state legislature to strip ⁢it ‌of⁣ self-governing authority over the parks.
Florida and Disney are locked in ⁣a ‌legal battle over the ‍formation of‌ the Central ​Florida Oversight District board, which assumed oversight of development in the nearly 25,000 acres (100 ‍square kilometers) of property in and around Disney’s‍ theme parks.
It is ⁣unclear how much of ​the $60 billion in new investment in parks‍ will be spent in Florida, where‌ Disney faces increased competition from rivals ‍such as Universal​ Orlando ​Resort. Iger previously‍ said the company planned to spend $17 billion in investment at Walt Disney World over the next‍ 10 years.
Parks have become a reliable profit engine for Disney at a ​challenging time for the company.
Disney ‌has also faced social media backlash ⁤from ⁢conservative commentators ‌over⁢ the casting of⁣ Halle Bailey, a Black ⁣actress, in the lead role of Ariel in “The Little Mermaid,”⁣ though the movie ended up making $570 million⁣ worldwide, making it‍ the seventh-highest grossing ⁤film of⁣ 2023 so far, according to Boxofficemojo.
Several countries last year blocked the release of the Pixar Animation Studios film ⁤“Lightyear,” which depicts a ⁣same-sex couple sharing a brief kiss.
Iger’s remarks ‌about its content appear to mirror those he made at the company’s annual shareholder ⁣meeting in ⁤April.
At the time, Iger was ​responding⁣ to an investor who ⁢said the company​ was ‍becoming too concerned with social issues.“Our primary mission needs to ⁤be to entertain … and to have a positive impact on the world,” Iger ‍said at⁣ the time. “I’m‌ very serious about that. It should not be agenda-driven.”Reporting by Dawn ⁤Chmielewski in Los Angeles
Editing by Marguerita ChoyOur⁤ Standards:…

Source ​from www.reuters.com

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