Gregg Donovan displays a sign at the El Capitan Entertainment Centre, where “Jimmy Kimmel Live!” is recorded to celebrate the show’s return on Hollywood Boulevard in Los Angeles, California, U.S. on Sept 23, 2025.
Gabriel Cortes | CNBC
The image for Disney and its streaming service have plunged to multiyear lows after temporarily pulling comedian Jimmy Kimmel off air. This controversial decision has alienated members of both political parties, according to analysis by investment bank Jefferies.
Using data from Morning Consult, Jefferies revealed that sentiment towards Disney and its Disney+ platform has fallen to levels not seen in at least two years. Notably, sentiment among Democrats, who previously held a more favorable view of Disney, has soured more than that of Republicans, although both groups have shown significant declines.
Analyst James Heaney commented, “The last two weeks for Disney have been eventful, to say the least, and equally controversial.” He noted that a recent price hike for Disney+ has further contributed to the negative sentiment surrounding the brand.
Disney became a cultural flashpoint after taking Kimmel’s late-night comedy show off the air following his comments about slain conservative activist Charlie Kirk. This decision came after Federal Communications Commission Chair Brendan Carr hinted that the network’s broadcast license could be at risk. Local ABC-affiliated stations owned by Nexstar Media Group and Sinclair preempted the show in their areas prior to Disney’s decision.
Disney shares, 1-month
Heaney pointed out that Disney faced backlash not only for Kimmel’s original comments but also for the decision to halt his show’s production and then subsequently bring him back.
Critics, including influential figures in Hollywood who lean Democratic, argued that Disney was yielding to pressure from President Donald Trump’s administration instead of defending the First Amendment right to free speech. Kimmel’s show returned to much higher viewership than usual.
A chart shared by Heaney illustrated that the ratio of positive to negative sentiment towards Disney among Democrats, Republicans, and all consumers has plummeted to near zero, marking the lowest levels since before 2024.
Additionally, Disney announced a price increase for many of its subscriptions, raising costs by $2 to $3, effective October 21.
Despite the turmoil, Heaney noted that Disney achieved its highest brand awareness in the past two years. However, the increase for Disney+ was modest, which he suggested could bode well for CEO Bob Iger from a business perspective.
“This is clearly a PR hit for Disney,” Heaney stated. “But the data implies a smaller impact on Disney+ than the brand as a whole, which may limit the amount of streaming churn.”
Over the past month, Disney shares have dropped 6%, pulling the stock into negative territory for 2025. Nevertheless, Heaney reaffirmed his buy rating and set a price target of $144, indicating nearly 30% upside from Wednesday’s close.
