Business

What Is Disney Thinking?

What Is Disney Thinking?

Bob Iger and Disney are used to dealing with all manner of PR crises; it comes with the territory when you’re operating one of the best known and most beloved brands in the world. But what has happened with Jimmy Kimmel over the past 24 hours has been something far different (and scarier) than a mere public-relations kerfuffle: FCC chairman Brendan Carr, a MAGA loyalist, threatened to damage a key part of Disney’s broadcast-TV business if its ABC network didn’t “take action” against Kimmel to address his concerns over a few sentences from his September 15 episode that the right-wing outrage machine had deemed problematic. Within hours, ABC announced that Kimmel’s show was being pulled from its lineup “indefinitely,” his future at the network suddenly became unclear — and Iger’s legacy as CEO was very much at risk.
Keep in mind the timeline of how this madness has played out: On Monday night, Kimmel delivered his monologue, which included a small, admittedly awkward sentence. On Tuesday, Fox News posted video from the monologue; by Wednesday morning, podcaster Benny Johnson, a key ally of the Trump White House, released a podcast with this YouTube subject line: “Jimmy Kimmel LIES About Charlie Kirk Killer, Blames Charlie For His Murder!? Disney Must Fire Kimmel.” The guest of honor on the pod: Carr, who said ABC could “do this the easy way or the hard way.” The rest played out in front of our eyes last night: Nexstar announced it was pulling Kimmel’s show, Sinclair quickly followed suit, and within 15 minutes, an ABC publicist was texting reporters its now-famous seven-word statement: “Jimmy Kimmel Live will be preempted indefinitely.”
This story is far from over, and it is too soon to render judgment about What It All Means. As of Thursday afternoon, Kimmel’s show had not been canceled and he is still an employee of the Walt Disney Company, despite Donald Trump celebrating the comedian’s demise Wednesday night. Indeed, according to a person familiar with the matter, the whole purpose of ABC’s vague statement was to give the network, Kimmel, and ABC’s major-affiliated-station groups time to react to Carr’s threats in a way that ensured the show remained on the air. “There is a desire to find, and folks are working toward, what a path forward looks like for the show,” one Disney insider says of the company’s thinking. Another person familiar with the matter says that while Iger was consulted, it was Disney TV boss Dana Walden who made the ultimate call to cancel the show’s Wednesday taping. Sources say the talks between Kimmel and Disney continued on Thursday with the goal of finding a way for the host to get back on TV “as soon as possible.”
All this may sound like spin from Disney, and if this ends with Kimmel leaving the network, that is surely how it will be interpreted in many quarters. The courts of social media and punditocracy have already — and somewhat understandably — charged and convicted ABC with bending the knee to the Trump administration. Whatever happens next, there is no taking back the decision to pull Kimmel’s show, for any length of time, in response to a coordinated, deliberate attack on him and ABC by Carr and right-wing influencers and podcasters.
But you don’t have to excuse what Disney did Wednesday to accept the possibility that the purpose of its actions were not to punish Kimmel but to get through this crisis with Jimmy Kimmel Live! standing. One veteran Hollywood insider not connected to Disney said the utter blandness of ABC’s Wednesday statement is evidence that the company was winging it and essentially stalling for time. “There was not an ounce of spin in what they said,” this person says. “That means they had nothing to say that could please the government, their employees, the affiliates, or talent. And I don’t blame them. I probably would have done the same.”
While folks on the right celebrated what they deemed a victory, ABC’s move ended up turning a story mostly limited to the right-wing information bubble into international news. Countless Democratic officials, including former president Barack Obama, denounced what had happened; cable news offered nonstop coverage for hours; creators threatened to boycott Disney unless Kimmel returned to the air; Jon Stewart decided he would host a special edition of The Daily Show Thursday to respond. “Now what you have is a cascading effect,” the veteran Hollywood exec says. “If the goal was to simmer down the temperature, it didn’t. It became volcanic.”
Nobody should be pulling out the violins for Iger or Disney, but U.S. corporations do not have a ton of experience dealing with a government as ruthless and shameless at going after its targets as this Trump White House has been. While Trump’s bluster was plenty loud during his first term, folks like Carr literally wrote a playbook — Project 2025 — on how to learn from the mistakes of that administration and better execute their vision of America. With Carr, networks now have not an objective regulator, or even someone with a partisan agenda, but something unprecedented in recent history: a mercenary who seems intent on using the regulatory state to serve the personal whims of the president. Trump perceives late-night comedians and network newscasters as his enemies; Carr has gone after both within his first year on the job.
Even people outside Disney are shocked at what he has done. “Brendan Carr is drunk with power and glee,” a longtime TV-industry executive says. “He’s like the nerd who was bullied in high school, gets power, and has gone crazy with it.” Furthermore, a person familiar with the matter says that as right-wing outrage over Kimmel’s comments grew, employees inside ABC began getting threats to their personal safety. That has factored into Disney’s handling of the situation, a person with knowledge of the situation said.
Still, it’s not as if Iger & Co. have not had time now to prepare for these sorts of incidents and devise a clear strategy to fight back. Even if this ends with Kimmel back on the air, Iger’s silence has caused at least some short-term damage to Disney’s brand and his personal image. He has long been regarded as among the most talent-friendly of CEOs, and Kimmel has been among the most loyal of Disney soldiers. Would it have really hurt the cause for Iger (or Walden) to come out with a statement Thursday morning defending Kimmel while showing sensitivity to Charlie Kirk’s death?
But Disney clearly decided to play things safe and not add any fuel to the fire by saying anything until it decides what comes next. While nobody from Disney or Kimmel’s team would comment on Thursday afternoon, it seems likely the two sides have been in discussions about what, if anything, Kimmel needs to say to make ABC comfortable with putting him back on the air. (The show will remain off the air Thursday night.) Just as important, the network is likely in discussions with Nexstar and other affiliate groups about what they will require in order for them to resume airing Kimmel’s show. ABC would want to get both of them back onboard, but Nexstar — which is trying to get a huge merger deal approved by the FCC — in particular has proved it’s in full suck-up mode to Carr and Trump. “Nexstar saw all this as an opportunity to score points with the FCC,” an industry insider says. And with fellow affiliate group Sinclair joining the Kimmel pile on, it has even more leverage with Disney.
That said, if ABC can come to an agreement with Kimmel over an appropriate response, Disney could, in theory, decide to just live with Nexstar and Sinclair boycotting Kimmel’s show. While it would mean some loss of ad revenue, it’s not as if late night is a giant profit center for networks; just the opposite. This isn’t 1995, or even 2005, where a Kimmel blackout in, say, 20 percent of the country would be a financial disaster. Much of Kimmel’s viewership now takes place on YouTube and Hulu. Disney could even go with a nuclear option and just make Jimmy Kimmel Live! a Hulu exclusive and let affiliates fill the hour with local news. CBS’s decision to cancel The Late Show With Stephen Colbert at the end of this season makes such a move even less risky, since it’s not as if ABC would be the lone big-three network without a late-night show.
Regardless of the outcome, what is becoming sadly clear is that this will not be the last time big media companies are forced to deal with the MAGA machine moving swiftly, and with full government support, to achieve its goals. And broadcasters like ABC will keep butting up against this dynamic again and again because they program not only prime-time entertainment shows but topical talk series and newscasts. “It’s the worst time ever to be at a broadcast network, especially if you work in PR. Literally every day now, someone is going to say something,” the Hollywood veteran says. And while such controversies happened long before Trump, the mood in Hollywood is different now. “Before, when you had a backlash, it felt like social justice. Now, it feels like the full power of the U.S. government coming for you.”