Daniel KayBusiness reporter
ReutersDisney+ and Hulu cancellations doubled in September after TV host Jimmy Kimmel was briefly taken off air, suggesting the move could have financially crippled the entertainment giant.
Data from analytics firm Antenna shows that Disney+'s so-called churn rate (the percentage of subscribers who cancel their subscriptions each month) jumped from an average of 4% to 8%, equating to about three million cancellations, while Hulu's rate rose to 10%, or more than 4 million.
Disney suspended Kimmel following comments he made about the murder of Charlie Kirk following pressure from a federal regulator. The decision sparked debate over freedom of speech.
ABC, which airs Jimmy Kimmel Live, reinstated him a week after the backlash.
Disney, which owns ABC, decided to take the comedian off the air on Sept. 17, two days after Kimmel said on one of his shows that the “Magician gang” was “desperately trying to characterize this kid who killed Charlie Kirk as someone other than one of them” and trying to “score political points for it.”
The abrupt suspension came hours after Brendan Carr, chairman of broadcast regulator the Federal Communications Commission (FCC), threatened to revoke ABC's broadcast license.
The move was met with protests in California and was criticized by the Writers and Actors Guilds, lawmakers and the American Civil Liberties Union (ACLU).
Critics and First Amendment supporters slammed ABC's decision, calling it censorship and a violation of free speech. They also called for economic pressure to be put on Disney, urging people to boycott the company's services.
Hundreds of celebrities and Hollywood creatives signed the letter Kimmel's support who was later reinstated.
ReutersNew Antenna data released Monday provides the first indication that Disney may have taken a hit from the blowback.
Disney+ and Hulu lost millions more subscribers in September compared to previous months, while Netflix's churn rate remained steady at 2%.
However, it is unclear whether Kimmel's suspension was the only factor behind the sharp rise in cancellations.
Disney's decision to suspend Kimmel coincides with the announcement of a previously planned increase in subscription prices as the company faces pressure to increase its profits from streaming services.
Despite the rise in cancellations, both Disney+ and Hulu saw new subscriber gains in September, offsetting some of the losses, according to Antenna.
Disney declined to comment and Hulu has not yet responded.
