Disney Is Worried That Woke Is Ruining Their Brand After Consistent Flops

The Little Mermaid, Aladdin, The Lion King, Mulan, and many more told the kind of magical stories that stayed in our hearts, along with catchy music that could get stuck in our heads for days. This period is often referred to as the “Renaissance Era,” and many suspect that these movies are loved by women everywhere because Disney successfully captured the brilliance and timelessness of femininity. Jasmine was seductive and required her man to work for her, Ariel taught us about sacrifice and trust, and Mulan was both brave and family-oriented. All of the princesses had their own personalities and opinions, but they each made room for a prince to come in and sweep them off their feet. None was too proud to reject a man. 

These traditional Disney films were never political, and the themes were always centered on universal, relatable stories that brought people together rather than driving them apart. However, Disney has certainly lost its way over the last couple of decades. They’ve lost their touch at producing hit movies that resonate with both young children and adults. 

Disney Movies Have Taken a Turn for the Worse

Turning Red, the Disney Pixar film of 2022 that was acclaimed for its heartwarming narrative and representation, did not achieve high commercial success compared to other Pixar films. With a global box office gross of only $20 million against a production budget of $175 million, it ranks among the biggest box office bombs of 2022. The supposed reason for its underperformance is attributed to its simultaneous release on Disney+. This strategy allowed audiences to view the film at home, significantly affecting its worldwide box office earnings. However, it left people wondering if it just wasn’t good enough to draw in audiences; there were many parents who expressed their disappointment with the type of inappropriate content that was being delivered to teenagers for the sake of sending a particular message to the world. 

The Disney animated movie Strange World also faced a significant box office shortfall, with an estimated loss of $147 million in 2022. A notably woke aspect of the film is the introduction of Disney's first openly LGBTQ+ teenage character, who discusses his same-sex crush. The film's underperformance is attributed to various factors, including its inclusion of sexuality discussions, which deterred many parents from allowing their children to watch it. Some critics suggest that modern parents, more informed through social media, may choose to avoid content with inappropriate sexual themes for their children.

Similar issues in the past were observed with Pixar's Lightyear, which included a gay kiss and initially underperformed at the box office. Chris Evans, a voice actor in Lightyear, criticized those opposed to the movie's “inclusive” content. However, what he considered inclusive was just seen as annoyingly woke to the general public. Parents have generally never been on board with showing their children progressive content, regardless of the political message companies like Disney are desperately trying to send. 

Elemental, a Pixar movie, actually defied initial poor box office performance to become a significant hit. Released in June, it had the worst opening in Pixar's history with $29.6 million in domestic ticket sales. However, the film, which cost $200 million to produce, gradually gained momentum, earning nearly $500 million globally. It currently ranks as the ninth top-grossing film of the year, surpassing Marvel's latest Ant-Man sequel. But this was an anomaly compared to the rest of the Disney flops in the last two years. 

Now, Disney is again experiencing a box office bomb with its Thanksgiving release, Wish, the newest princess film that seeks to copy Encanto’s success. But, due to its poor storytelling, boring songs, and progressive message, it has also flopped. 

Disney Says It “Lost Some Focus”

Disney has disclosed that it invested a staggering $965 million in four high-profile projects in 2023, which unfortunately turned out to be significant flops: Ant-Man and the Wasp: Quantumania, The Little Mermaid, Indiana Jones and the Dial of Destiny, and Secret Invasion. This revelation comes amid a cost-cutting initiative led by CEO Bob Iger, who returned to lead the company in November 2022. Iger emphasized the need to reduce production costs, acknowledging the exorbitant expenses involved in creating content.

In early November, Bob Iger said, “At the time the pandemic hit, we were leaning into a huge increase in how much we were making and I’ve always felt that quantity can be actually a negative when it comes to quality. And I think that’s exactly what happened. We lost some focus.”

“I’ve always felt that quantity can be actually a negative when it comes to quality. And I think that’s exactly what happened. We lost some focus.”

Typically, the budgets of movies and streaming shows are kept confidential, as studios usually lump these costs into their overall expenses without detailing individual project expenditures. However, Disney's production activities in the UK provide a clearer picture of their spending, due to the unique financial reporting requirements in that country. Studios operating in the UK must set up separate companies for each production to avail a tax rebate of up to 25% on their expenditures. These companies are required to file financial statements, which reveal detailed spending data.

Disney has been leveraging the UK's incentive scheme by filming more content there. This strategy, however, has led to significant investments in some of its most expensive and least successful productions of the year. A notable example is the Marvel Studios superhero film Ant-Man and the Wasp: Quantumania. Despite spending a hefty $193.2 million on pre-production and filming, the movie opened to mediocre reviews. This situation illustrated the challenges Disney faces in managing production costs while striving to create compelling content that resonates with audiences and succeeds financially.

Disney Acknowledges That Going Woke Hasn’t Worked Out So Well for Them

Disney is finally acknowledging the significant impact of wokeness and culture wars on its operations. This admission was made in its annual financial report filed with the Securities and Exchange Commission for the fiscal year ending September 30. The report highlights various aspects of Disney's performance and future risks. Disney employs about 225,000 workers worldwide and emphasizes its commitment to creating a more inclusive and diverse workplace. This commitment aligns with its Diversity, Equity, and Inclusion (DEI) objectives, which focus on reflecting the life experiences of its audience and supporting diverse voices in creative and production teams.

Financially, Disney reported revenues of $88.9 billion for fiscal 2023, marking a 7% increase from 2022. Despite this growth, the company has reduced spending on film and TV content, cutting it from $29.8 billion to $27.2 billion. Iger plans to further reduce content spending to $25 billion next year. Alongside these cuts, Disney has also implemented staff reductions and other expense cuts, achieving about $7.5 billion in cost savings.

Disney's involvement in culture wars and public debates has had widespread effects. The company acknowledges risks related to “misalignments” with public and consumer preferences, which affect demand and profitability across various segments, including broadcast, cable, theaters, internet, mobile technology, theme parks, hotels, resorts, and consumer products. This misalignment has led to challenges in adapting to market changes and economic or social climates.

"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," Disney admitted, acknowledging that consumer preferences impact revenue.

Disney's leisure business is influenced by multiple factors, including health concerns and the political environment. The company's intervention in the debate over Florida's Parental Rights in Education bill in March had significant repercussions. Florida Governor Ron DeSantis responded by revoking Disney’s special district status in the state, highlighting the cost of Disney's political engagement.

Closing Thoughts

Whether Disney is going to correct its course is yet to be seen. Even with its flops, the brand remains the most recognizable name in the entertainment industry, and it has committed itself so deeply to the woke liberal cause that it’s difficult to imagine they would ever come back from that. In the meantime, their movies will continue to flop if they don’t find a way to return to the Renaissance Era (or something remotely close to that) and offer audiences heartwarming, relatable stories rather than subtle (and not-so-subtle) tales of progressive politics. 

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