Disney notes ‘risks’ to their brand and reputation over pursuing ‘social goals’

BURBANK, Calif. – The Walt Disney Company said in a report with the SEC that there have been “risks” over the company’s positions on environmental and social issues.

“Generally, our revenues and profitability are adversely impacted when our entertainment offerings and products, as well as our methods to make our offerings and products available to consumers, do not achieve sufficient consumer acceptance,” the company said.

“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 brands,” it said. “Consumer tastes and preferences impact, among other items, revenue from [a variety of sources].”

Recent polling has found an adverse relationship from consumers based on political affiliation against Disney.

Earlier this year, one poll from Axios found their reputation dipped more than 10% from what it was years ago, primely declining with Republicans.

Disney had gained exposure on political issues in 2022 when they opposed Florida’s Parental Rights in Education bill, which restricted gender identity and sexual orientation teachings in grades K-3. Those restrictions have since been expanded to all grades with some exceptions.

Gov. Ron DeSantis was at the forefront of battling Disney, a topic he’s touted throughout his 2024 primary campaign.

The governor and his appointed board overseeing the Walt Disney World area have also been embattled in a legal dispute over the district’s authority.

Recently, DeSantis said he has “moved on” from the Disney feud. He’s maintained that he has won against the company.

“Apart from Florida, Disney has had a lot of problems and I think that the skirmish they got in with these young kids [K-3 Parental Rights bill] – I think that’s a symptom of why they’re not doing as well,” the governor said to CNBC. “Parents have lost some confidence.”

“But, where we are today – you know – we basically moved on,” he said. “They’re suing the state of Florida, they’re going to lose that lawsuit. So what I would say is, drop the lawsuit.”

Disney is seeking to cut additional costs after a slight rebound in the fourth quarter for revenue.