‘Politics is bad for business.’ Why Disney’s Bob Iger is trying to avoid hot buttons
As a seasoned journalist who has covered countless court cases and political battles, I find myself deeply intrigued by this complex dance between Disney, Trump, and the First Amendment. Having spent my career navigating the delicate balance of truth and sensationalism, I can’t help but admire Disney’s strategic decision to prioritize their entertainment-first approach over a potential legal battle with President Trump.
Bob Iger wants out of the culture wars.
Since doubling down on efforts related to diversity and inclusion following George Floyd’s tragic death in Minneapolis four and a half years ago, The Walt Disney Company and its CEO have significantly adjusted their approach. Back then, Disney’s top leaders, including former Chairman Iger, promised their employees in a message that they would continue the discussion about these important issues until substantial change was achieved.
1) In a shift towards inclusivity, The Magic Kingdom has replaced its traditional greeting with a gender-neutral salutation for its nightly fireworks show, switching from “Good evening, ladies and gentlemen, boys and girls” to “Welcome, dreamers of all ages.” Furthermore, Pixar’s film “Lightyear” showcased a brief kiss between two female characters, while Disney’s animated movie “Strange World” introduced the company’s first biracial queer teen protagonist.
Recently, Disney admitted that they took out a transgender athlete storyline from the upcoming Pixar series “Win or Lose,” which revolves around a middle school softball team. In a statement, Disney explained that they understand many parents might want to talk about such topics with their children at their own pace and convenience.
As a dedicated fan, I’d rephrase it like this: Last spring, Donald Trump filed a high-profile defamation lawsuit, and in response, Robert Iger, being the owner of ABC News, agreed to a settlement amidst criticism from journalists that he succumbed to political pressure.
Disney consented to cover $1 million in legal expenses for Trump, as well as contribute an additional $15 million towards the construction of his future presidential library.
Last spring, Trump filed a lawsuit against ABC News and anchor George Stephanopoulos following comments made during an on-air discussion. Stephanopoulos had claimed that a civil court jury had found Trump guilty of rape in a case involving advice columnist E. Jean Carroll. However, the New York jurors actually ruled that Trump was accountable for “sexual abuse” instead.
According to certain First Amendment specialists, ABC’s lawsuit appeared strong, in part, due to the challenging standard for public figures to demonstrate libel or slander.
In a recent Substack opinion piece, I, as a follower of the situation, stated that the network could possibly have continued if they had persevered. However, their current predicament seems to embolden Trump in his assaults on the media – a move that, ironically, he doesn’t really need any additional motivation for.
Disney declined to comment for this story or make Iger available for an interview.
Individuals familiar with the situation, but not permitted to speak publicly, reportedly disclosed that Disney’s top legal advisor suggested a settlement with Trump, while the choice to eliminate the transgender plot from “Win or Lose” was allegedly made several months prior.
A bruising fight with DeSantis
Disney’s withdrawal occurred approximately three years following a period where they found themselves stuck in a politically challenging situation.
In early 2022, Governor Ron DeSantis criticized Disney following an indecisive reaction from then-CEO Bob Chapek regarding a Florida law that restricted discussions about sexual identity in classrooms. Initially, Chapek opted to avoid the controversy and he supported the company’s initial silence, stating in a letter to employees that corporate statements typically have little impact on changing outcomes or opinions.
Statements like these are frequently used as tools to widen the gap and fuel tensions by either party, as expressed by Chapek.
However, following strong demonstrations by staff members and advocates, as well as a tweet from former CEO Iger expressing concern that the Florida bill could endanger young, vulnerable LGBTQ individuals, Chapek ultimately changed his decision.
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Chapek has faced criticism for issuing a statement in support of Ukraine but not the LGBTQ community in Florida. The CEO doesn’t want the company to be a “political football.”
DeSantis seized on Disney’s shifting stance and branded the company as “woke.”
In conservative circles, the pejorative label stuck.
Michael Binder, a political science professor at the University of North Florida, noted that when a private organization is associated with a political group, it can lead people to see issues from that perspective quite rapidly,” said in simpler terms.
Two years into his return as CEO, Iger acknowledged the dire nature of the challenge at hand, recognizing it as an existential threat.
As a passionate movie enthusiast, I firmly believe that our main objective ought to revolve around providing entertainment. We must steer clear of making it a platform for pushing agendas.
Entertainment & Arts
The killing of George Floyd prompted numerous entertainment businesses to pledge far-reaching actions toward racial equality, and a recent survey by The Times reveals the current status.
Over time, Iger has consistently emphasized the need for Disney to focus less on direct political statements in its operations.
In order to resonate with your audience, the tales you weave must mirror their unique perspectives. However, this audience is incredibly varied, and they might find certain elements off-putting. Therefore, it’s crucial to be more mindful of a wide range of preferences. It’s not an easy task.
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The Burbank company has a hangover from its big streaming push. The stock has struggled, investors are restive and its key studios have been stretched.
Disney’s nearly two-year fight with DeSantis was bruising.
According to Binder, who heads the Public Opinion Research Lab at the University of North Florida, DeSantis was employing Disney as a political counterpart to bolster his campaign for presidency. This tactic, where governors or elected officials openly criticize private corporations, especially a Republican targeting one, is not something that we usually observe.
A team of academic experts discovered that the conservative community is supporting Governor DeSantis’ “wokeness” confrontation with Disney, even though it’s worth noting that Disney has had a substantial presence in Florida as one of its major employers and a crucial element of its tourist industry for quite some time.
According to a survey conducted on Florida-registered voters early in 2023 by the Public Opinion Research Lab, it was discovered that approximately 27% of Republicans within the state held a positive opinion towards Disney. Conversely, around 76% of Democrats who participated in the poll expressed fondness for Disney.
A significant divide occurred, which isn’t ideal for a business aiming to appeal to everyone,” Binder explained.
1) After Republican legislators sided with Governor DeSantis, Disney found itself stripped of its exclusive land-use privileges in Central Florida. In response, Disney took legal action the subsequent year under the First Amendment, claiming that DeSantis and Florida Republicans had orchestrated a targeted attack on Disney for expressing its opposition to their anti-LGBTQ+ legislation through free speech.
Earlier this year, a federal judge threw out Disney’s First Amendment lawsuit.
In simpler terms, Disney resolved its issue with Florida, yet the situation involving Governor DeSantis underscored the potential risks of advocating for the company’s beliefs to a worldwide audience during divisive periods.
Charles Elson, a past director at the Weinberg Center for Corporate Governance at the University of Delaware, stated that Disney offers an item: enjoyment. He believes it’s inappropriate for such a business to focus on political matters.
From my perspective as a movie buff, it’s quite a tangled web for businesses to unwind their commitments when they take a stance on politics. It can get expensive and complicated.
Elson stated, ‘Entering politics speaks volumes.’ Leaving it does as well.” or “Elson noted, ‘Becoming political is a declaration.’ So is choosing to step away.
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The upcoming Disney shareholders’ meeting is seen as a heated debate over the performance of CEO Bob Iger, who came back to address significant issues within the company towards the end of 2022.
Iger has long championed Disney’s efforts to diversify its casts and storylines.
101-year-old business unveiled its first Black princess character in 2009. Approximately ten years passed, and they produced the movie “Coco,” brimming with Latino culture. In 2018, their Marvel production, “Black Panther,” achieved massive success, amassing over $1.3 billion at box offices worldwide.
As a passionate cinema enthusiast, I can’t help but share my excitement about the phenomenal success of “Moana,” the captivating film rooted in Polynesian mythology. It’s truly remarkable to know that it holds the title as the most-streamed movie on Disney+. Now, its sequel, released during Thanksgiving weekend, has absolutely smashed box office records and amassed an impressive $750 million internationally. What a journey this franchise has taken us on!
In our latest annual statement, the company stated that our enterprises produce entertainment, travel services, and consumer goods whose achievements are significantly influenced by ever-changing consumer fancies and whims.
The report notes that there can be significant discrepancies among consumers regarding how they view our stance on important public issues, such as our environmental and social objectives, which may potentially harm our reputation and brand.
A cloudy defamation case
After making the decision to step back instead of confronting the incoming president, Disney has now become part of a list that is getting longer by the day. This move has left some First Amendment specialists disappointed as they felt Disney had a chance to successfully challenge Donald Trump’s defamation allegations in the ABC News case.
In simple terms, last year, a federal judge in Florida dismissed a lawsuit Trump filed against CNN. This suit aimed for $475 million in damages due to what Trump considered CNN’s defamation of his reputation by calling his attempts to overturn the results of the 2020 election “the Big Lie.
However, it could have been more challenging to justify Stephanopoulos’ remarks, as suggested by individuals privy to Disney’s internal discussions.
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The host of ‘Good Morning America’ will continue on the show, as it currently trails behind ‘The Today Show’ from NBC in terms of viewership.
It was reported by an informed source that Disney’s top officials, including General Counsel Horacio Gutierrez, expressed worry following the judge’s decision in July not to dismiss the case. In her ruling, U.S. District Judge Cecilia M. Altonaga stated that a jury might reasonably view George Stephanopoulos’s statements as defamatory.
Altonaga was appointed by former President George W. Bush.
Disney perceived that bringing the case before a jury in South Florida, given Trump’s significant popularity there, could be risky, according to informed sources. Additionally, surveys indicate an increasing distrust towards the media among many people.
An ‘entertainment-first’ company
Disney’s legal team understands that some traditionalist legal minds might consider appealing this case to the U.S. Supreme Court, where three justices appointed by President Trump currently serve. Additionally, it is worth noting that Justice Clarence Thomas has previously expressed a wish to overturn the groundbreaking New York Times vs. Sullivan ruling, which could significantly impact the ABC News case.
Disney aimed to avoid compromising sixty years of hard-earned press freedoms granted by that decision. Additionally, it wished to prevent potential damage to its own reputation and ABC’s, considering the challenges they might face in the form of attacks from Trump during his second term. Specifically, CNN suffered a hit to its reputation following their confrontations with Trump, who referred to the cable news channel as “fake news.
Elson stated, “It’s not wise to pick a dispute with the leader of an administration that oversees your operations, as politics can be detrimental to business.
Disney is attempting to tread a fine line rather than overstep it. In their recent shareholders’ meeting, Iger expressed his conviction that Disney carries a duty to make positive contributions to society.
In his conversation with CNBC last spring, Bob Iger stated that The Disney Company has the potential to make a constructive difference in the world by promoting acceptance and understanding among people of diverse backgrounds. However, he emphasized, it’s essential for Disney to maintain its primary role as an entertainment provider.
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2024-12-23 14:33