Friday, December 01, 2023

Disney Forced To Tell The Truth

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The Walt Disney Company has been wallowing in its own misdeeds since it decided to forsake the company's founding principles and go "woke."

They just can't seem to pull themselves out of the miry clay they've created.

However, the day of reckoning has come. 

In its annual Securities and Exchange Commission (SEC) report, the company said its success “depends on our ability to consistently create compelling content,” but when it does not “achieve sufficient consumer acceptance,” profits fall.

Any fifth grader knows that. 

But why are they not "creating compelling content?"

And why are they purposefully continuing to create content the public doesn't accept?

Be informed, not misled.

If a company wants to remain profitable, it needs to meet the needs and wants of its consumer base. From mom-and-pop stores to big brands such as Disney, they will soon be out of business if they aren’t offering what customers want to buy.

Some companies, like the House of Mouse, are discovering – or perhaps rediscovering – that sticking their noses into politics can be just as detrimental to the bottom line as offering unwanted or cheap products. Disney pointed this out in its SEC report, saying its revenues and profits “are adversely impacted when our entertainment offerings and products, as well as our methods to make our offerings and products available to consumers, do not achieve sufficient consumer acceptance. Further, consumers’ perceptions of our positions 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.”

Sen. Ted Cruz (R-TX) talked in depth about the company’s latest financial statements on his podcast, Verdict. He said the report was eye-opening to Disney’s investors, who now realize that the entertainment company prioritized politics over “making the business successful,” claiming it “is one of the most stunning corporate disclosures I’ve ever read.”

He continued, “Because what that means, is number one, Disney has lost billions of dollars. The phrase, ‘go woke, go broke,’ Disney has sadly embodied that phrase. I am sure Walt Disney is spinning in his grave at horrors as what has happened to his namesake."

“But," he said, "the fact that they put this in their SEC disclosures means, number one, the money they’re losing is so significant. Number two, their projections for future money that they’re going to lose are so significant that their lawyer said, ‘D—it, you have to acknowledge this in the disclosure or else you will be sued for misleading investors.'”

For Disney’s four big-budget releases flopping this year, Forbes reported that Mouse House spent nearly $1 billion. 

Cruz said regarding Disney's lawyer, “In other words, we must write these words so that when investors sue us and say your executives are putting your woke politics ahead of profitability, ahead of producing entertainment that consumers want, ahead of actually producing family-friendly entertainment that kids are interested in, and parents want their kids to see. That your politics matters more to you than making the business successful. They want to be able to point to this disclosure and say, ‘No, no, sorry, you invested, and we told you upfront. We don’t care about making a buck. Our politics is all we care about. And even if it flushes the corporate profits down the commode.'"

Jonathan Turley, a George Washington University law professor and contributor to Fox News, used economist Adam Smith’s “invisible hand” metaphor to explain Disney’s problem with consumers who can use their right to choose between products. In a piece for The Hill, he wrote, “Disney appears to acknowledge that Smith’s invisible hand is giving the ‘House of Mouse’ the middle finger. In a new corporate disclosure, Disney acknowledges that its controversial political and social agenda is costing the company and shareholders.”

He compared the family-oriented icon’s woes to Bud Light executive Alissa Heinerscheid, who said the brand needed to get rid of the frat boy reputation. She was “heralded by colleagues, even though her move went on to tank that brand as a whole,” Turley emphasized.

He used Disney’s continued fight with Florida Gov. Ron DeSantis (R) and the so-called “Don’t Say Gay” bill as an example. “Moreover, when the company publicly declares its opposition to a popular parental rights bill in Florida, it is moving away from a commercial to a political focus.” 

He concluded: “You can bring movies to the public, but you cannot make them sell. Once an unassailable and uniting brand, Disney brand is now negatively associated with activism by a significant number of consumers.”


The Target store chain is playing with the same poison.

The wages of sin is death---the gift of God is eternal life.

Be Informed. Be Discerning. Be Vigilant. Be Engaged. Be Mindful. Be Prayerful.