Disney Dealing With Poor Financial News and Political Correctness Criticism
It has not been the best of times for the Walt Disney Co. The media giant’s stock fell over 4% in after-hours trading after Thursday’s report that it did not meet the Wall Street expectation for its streaming services. This subscription shortfall comes when the company is still dealing with the criticism that came after it continued to advocate the critical race theory to its employees.
Streaming Subscription Miss
It was disappointing news for Wall Street when Disney reported that subscriptions for the Disney+ streaming service only hit 103.6 million after financial analysts had predicted it would reach 110 million subscribers this quarter.
This shortfall was particularly disappointing after the company had invested a significant amount of money and resources in promoting both “WandaVision” and “The Falcon and the Winter Soldier.”
In addition to the disappointing Disney+ news, the company is also seeing continued losses due to the ongoing COVID-19 pandemic. The health crisis has severely affected Disney’s theme parks division. While Disney’s revenue was down 13% for the year, the company continues to assure investors that things are beginning to turn the corner as more parts of the world begin to open up.
Critical Race Theory Controversy
Just as Disney is being forced to deal with the disappointing earnings report, they are also under the gun for a recent report detailing how the company shoved critical race theory teachings on its employees.
While Disney said the intent was to encourage discussion, many Americans are growing tired of corporations taking political correctness to the extreme.