The annual report filed with the Securities and Exchange Commission warned investors that Disney’s “reputation and brands” are at risk due to its “key human capital management objective” of “making the workplace more engaging and inclusive” and creating a more “diverse workforce.”
This objective includes “amplifying underrepresented voices” and “building teams that reflect the life experiences of our audiences, while employing and supporting a diverse array of voices in our creative and production teams,” the filing noted.
As a result, Disney’s viewership and advertising revenue have dropped dramatically. The company suffered a 14% decrease in domestic advertising revenue due to fewer impressions, according to the filing, and was forced to cut at least $2 billion on film and TV content.
“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 SEC filing stated. “Our businesses create entertainment, travel and consumer products whose success depends substantially on consumer tastes and preferences that change in often unpredictable ways.”
Disney said its products are sometimes “introduced into a significantly different market or economic or social climate from the one we anticipated at the time of the investment decisions.”
And now it appears that “consumers’ perceptions of our position on matters of public interest, including our efforts to achieve certain of our environmental and social goals,” are no longer aligned with the company, Disney admitted.
Disney lost more than $1 billion at the box office this year after several of its new woke films, including Lightyear, Strange World and Elemental, tanked on the big screen.