The Walt Disney Company recently admitted that wokeness and the culture wars have had major impacts across the board at the multinational entertainment and media conglomerate. Disney also warned investors that the company’s awakening poses risks to its “reputation and brands.”
Last week, the Walt Disney Company filed its annual financial report with the Securities and Exchange Commission for the fiscal year ending September 30. The report details the performance of its range of properties over the last financial year, as well as their future potentials. risks for the global entertainment company.
He SEC Filing revealed that Disney employs approximately 225,000 workers worldwide. The company notes that it has a “key human capital management goal” of “making the workplace more attractive and inclusive” and creating a “more diverse workforce.”
Disney’s “Diversity, Equity and Inclusion” goals include “creating teams that reflect the life experiences of our audiences, while employing and supporting a broad range of voices across our creative and production teams.”
The Walt Disney Company also plans to “amplify underrepresented voices” within its DE&I initiatives.
Disney said the company’s revenue for fiscal 2023 was $88.9 billion, an increase of 7% compared to 2022.
However, Disney cut spending on content and staff.
Last year, Disney reduced spending on film and television content from $29.8 billion to $27.2 billion. Walt Disney Company CEO Bob Iger said earlier this month that his goal is to cut total content spending to $25 billion next year, according to The Hollywood Reporter.
Deadline reported: “Efforts to control content costs have been accompanied by broader cuts to staff and other expenses, with cost savings of some $7.5 billion already recorded.”
The entertainment giant said that for the first time in its history it had earned more revenue from streaming services than from traditional television.
Disney suffered a 14% decline in domestic advertising revenue due to fewer impressions.
Disney revealed that ESPN subscribers decreased 7% from the previous year.
The company noted that product costs increased by 11%, partly due to inflation.
The Walt Disney Company admitted that engaging in culture wars has had significant impacts across the board.
“We face risks related to misalignment with public and consumer tastes and preferences in entertainment, travel and consumer products, which affects demand for our entertainment offerings and products and the profitability of any of our business,” the SEC filing states. “Our companies create entertainment, travel and consumer products whose success depends substantially on consumer tastes and preferences that change in often unpredictable ways.”
Disney said the “misalignment” with its consumers has impacted “streaming, cable, movie theaters, Internet or mobile technology, and their use in theme park attractions, hotels and other tourism facilities and travel experiences and consumer products.” “.
Disney said its products are sometimes “entered into a significantly different economic or social market or climate than we anticipated at the time of our investment decisions.”
The entertainment conglomerate confessed that its environmental and social objectives present “risks.”
“In addition, consumer perceptions of our position on matters of public concern, including our efforts to achieve certain environmental and social goals, often differ widely and present risks to our reputation and our brands,” Disney admitted. “Consumer tastes and preferences affect, among other things, advertising sales revenue (which is based in part on the ratings of the programs on which the ads are broadcast), affiliate fees, subscription, revenue from motion pictures, licensing of rights to other distributors, theme park admissions, hotel room charges and merchandise, sales of food and beverages, sales of licensed consumer products, or sales of other consumer products and services. our consumption”.
Disney said its entertainment business is affected by several factors, including health concerns and the political environment.
In March, Disney inserted itself into the debate over Florida’s education parental rights bill on March 28.
Jumping into the political arena proved costly for the Mouse House when Florida Governor Ron DeSantis responded and revoked the Walt Disney Company’s special district status in the state.
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