In an astonishing SEC filing, The Walt Disney Company made several key admissions to federal regulators and its shareholders that the media megacorporation is beginning to feel the pain of its “misalignment” with consumers.
“We face risks relating to misalignment with public and consumer tastes and preferences for entertainment, travel and consumer products, which impact demand for our entertainment offerings and products and the profitability of any of our businesses.”
The statement continued to reflect the impact of “consumers’ perceptions of our position on matters of public interest,” reading in full:
“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.
Further, 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.”
George Washington law professor Jonathan Turley described this phenomenon for The Hill. saying the “‘invisible hand’ of Adam Smith is effectively giving the ‘House of Mouse’ the middle finger.”
Turley explained, “Disney and other companies have previously ignored consumer backlash over corporate campaigns such as Disney’s opposition to Florida’s Parental Rights in Education law. Corporate officials once avoided political controversies and focused on selling their products and services rather than viewpoints.”
Turley points out also that as previously reported by Trending Politics Disney has lost approximately a billion dollars due to at least 13 flopped ‘woke’ movie releases that were, as the professor put it, “denounced by critics as pushing political agendas or storylines.”
He added that Disney is indeed facing the invisible hand, noting, “You can bring movies to the public, but you cannot make them sell. Once an unassailable and uniting brand, Disney brand is now negatively associated with activism by a significant number of consumers.”
In a further blow to the left-leaning agenda that Disney has come to espouse, the SEC filing also presented findings that directly contradict already disproven Biden Administration talking points of decreasing inflation and a recovering economy.
Disney wrote, “Recent inflationary conditions increased certain of our costs. The current economic conditions could also have the effect of reducing attendance at our parks and resorts. Unfavorable economic conditions also impair the ability of those with whom we do business to satisfy their obligations to us.”
The company added a worrying glance to the future as well, writing, “In addition, an increase in price levels generally, or in price levels in a particular sector, could result in a shift in consumer demand away from the entertainment and experiences we offer, which could also adversely affect our revenues and, at the same time, increase our costs. A decline in economic conditions or a failure of conditions to improve as anticipated could impact implementation or success of our business plans.”