The Disney Grooming Syndicate’s annual SEC report tried to bury its foundational problems in the word salad of all word salads. Thankfully, That Park Place saw right through it. The key takeaway from the report is that Disney, as required by law in these filings, is warning investors that its social goals are more important than profits.
“There is in such things a statement of the various ‘Risk factors’ the company may encounter,” explains That Park Place, “all in the obligatory legal way to avoid people later saying ‘You never warned us about this!!’”
In other words, in this annual report, Disney must warn stockholders and potential stockholders of the risks these investors are accepting if they hold or choose to purchase Disney’s ailing stock. Here’s a key takeaway hidden within a pile of Disney’s CorporateSpeak [emphasis mine]:
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. Our businesses create entertainment, travel and consumer products whose success depends substantially on consumer tastes and preferences that change in often unpredictable ways. The success of our businesses depends on our ability to consistently create compelling content, which may be distributed, among other ways, through broadcast, cable, theaters, internet or mobile technology, and used in theme park attractions, hotels and other resort facilities and travel experiences and consumer products. Such distribution must meet the changing preferences of the broad consumer market and respond to competition from an expanding array of choices facilitated by technological developments in the delivery of content. The success of our theme parks, resorts, cruise ships and experiences, as well as our theatrical releases, depends on demand for public or out-of-home entertainment experiences. Demand for certain out-of-home entertainment experiences, such as theater-going to watch movies, has not returned to pre-pandemic levels. In addition, many of our businesses increasingly depend on acceptance of our offerings and products by consumers outside the U.S. The success of our businesses therefore depends on our ability to successfully predict and adapt to changing consumer tastes and preferences outside as well as inside the U.S. Moreover, we must often invest substantial amounts in content production and acquisition, acquisition of sports rights, launch of new sports-related studio programming, theme park attractions, cruise ships or hotels and other facilities or customer facing platforms before we know the extent to which these products will earn consumer acceptance, and these products may be introduced into a significantly different market or economic or social climate from the one we anticipated at the time of the investment decisions. Generally, our revenues and profitability 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 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.
Read the above-bolded part again. Then read what’s below, where Disney admits there’s a massive price to pay for alienating more than half the country with its promotion (towards small children) of homosexuality, transsexuality, and various adult sexual fetishes:
Consumer tastes and preferences impact, among other items, revenue from advertising sales (which are based in part on ratings for the programs in which advertisements air), affiliate fees, subscription fees, theatrical film receipts, the license of rights to other distributors, theme park admissions, hotel room charges and merchandise, food and beverage sales, sales of licensed consumer products or sales of our other consumer products and services.
That is the Disney Grooming Syndicate admitting: 1) We recognize that our far-left social and political agenda has damaged our company’s reputation and profits, and 2) we have no intention of changing. You’ve been warned, suckas.
A few more takeaways from the SEC filing found by That Park Place:
The decline in domestic advertising revenue was due to a decrease of 14% from fewer impressions, reflecting lower average viewership, partially offset by an increase of 7% from higher rates.
Disney saw a 14 percent — double-digit — decrease in “impressions,” which is viewership.
Here’s where Disney admits its theatrical flops affect every other part of its business:
Upon a film’s release and determination of the theatrical performance, the Company’s estimates of revenues from succeeding windows and markets, which may include imputed license fees for content that is used on our DTC streaming services, are revised based on historical relationships and an analysis of current market trends.
The Disney magic starts with the movies. Without iconic movies, the rest of the company suffers. It’s the movie experience that nudges people to want to recapture that experience at a Disney hotel, theme park, or cruise line. If the movies tank, it sours the brand — and right now, Disney movies are tanking one after another. But that’s what happens when a brand built on protecting the innocence of children embraces the “social goal” of deliberately violating that innocence with drag queens, transvestites, homosexuality, and transsexuals.
Disney tried to bury the following bombshell using a lot of dull words, but it’s still a bombshell:
The decrease in licensing revenue was due to lower sales of merchandise based on Star Wars, Frozen, Toy Story and Mickey and Friends.
Mickey?
Star Wars?
Toy Story?
Mickey, Star Wars, and Toy Story are three of the greatest brands in American history.
Those are bottom-line brands, legacy brands, golden geese that have never stopped producing. For nearly 100 years, Mickey Mouse was infallible. For more than 40 years, Star Wars was infallible. For nearly 30 years, Toy Story was infallible. But Disney’s despicable and evil “social goals” now appear to be damaging three of the most universal and beloved brands ever created.
But.
Regardless of this reputational and monetary fallout, The Disney Grooming Syndicate intends to put its “environmental” and “social” goals before profits.
You dumb Disney investors can’t say you weren’t warned.
John Nolte’s debut novel Borrowed Time (Bombardier Books) is available today. You can read an exclusive excerpt here and a review of the novel here.