Jimmy Kimmel Live! is officially back on the air, but new figures suggest Disney and its streaming services took a hit when the controversy unfolded – now, shareholders are seeking answers.
For the uninitiated, ABC pulled Kimmel’s late-night chat show off the air on September 17, two days after a monologue in which he slammed Donald Trump’s response to Charlie Kirk’s death.
The news emerged just hours after FCC chairman Brendan Carr criticized Kimmel’s comments and threatened to take regulatory action against the Disney-owned network, with ABC affiliate holders Nexstar and Sinclair announcing they were preempting the show first.
The response was loud: netizens threatened to boycott Disney and 400 celebrities signed an open letter in defense of free speech. Following negotiations, Jimmy Kimmel Live! returned to ABC on September 23, followed by Nexstar and Sinclair affiliates three days later.
How many Disney subscriptions were canceled after Jimmy Kimmel?
It appears the Jimmy Kimmel controversy had an impact on Disney’s bottom line. A Disney insider told journalist Marisa Kabas this week that the media giant had more than 1.7 million total paid streaming cancelations between September 17 and 23.
The Handbasket founder went on to say that the total includes subscriptions to Disney+, Hulu, and ESPN, and that “the number of cancelations Disney saw in the week after suspending Kimmel was 436% above baseline subscriber churn.”
Some critics have suggested that the cancelations were due to a price hike, but the measurement period ends on September 23 – the day the hike was announced.
As Kabas reported last week, “More than a million people had canceled Disney streaming subscriptions as of Monday, the Disney source told me, and the company likely knew that trend would only continue the longer they kept Kimmel silenced.”
But what does 1.7 million canceled subscriptions actually cost Disney? It depends on which streaming services those cancellations came from and the average revenue per user. As of the third quarter of 2025, there were 207.4 million subscribers across Disney+, Hulu, and ESPN.
If we assume the cancellations were evenly spread across these platforms and average spending is say $7-$15 per user (depending on ads, bundles, premium tiers), you’re looking at roughly $12-$25.5 million in lost monthly revenue.
Again, when you consider the House of Mouse’s net worth is roughly $206.4 billion, this is a drop in the ocean. But even if the financial hit is small in the context of Disney’s overall size, it’s still significant.
A sudden spike draws scrutiny from shareholders, which can spook Wall Street. For a company built on brand strength, those kinds of optics can be just as costly, especially when it took another hit with the price hike.
As stated by Kabas, “Despite any good will earned by Disney from the announcement that they were bringing Kimmel back, the price increase is likely to create another wave of backlash against a company that was already on perilously thin ice.”
Disney shareholders could take legal action
This is evident by a looming legal threat, as Disney shareholders are seeking answers about what really went down when it came to Kimmel’s suspension, following unconfirmed reports that the company lost nearly $4 billion due to the controversy.
Last week, a group of investors composed of lawyers for the American Federation of Teachers and Reporters Without Borders sent a letter addressed to Disney CEO Bob Iger requesting “transparency into the initial decision to suspend Mr. Kimmel and his show.”
It reads, “Disney’s stock suffered significant declines in response to the company’s abrupt decision to suspend Mr. Kimmel and his show, Jimmy Kimmel Live!, which appeared to be in response to threats from the Chairman of the FCC, Brendan Carr, and ABC affiliates.”
The letter goes on to highlight Sinclair and Nexstar, including the fact that the latter is currently seeking approval from the FCC for a $6.2 billion acquisition of the media company Tegna.
“Mr. Kimmel and his show were suspended in the wake of comments he made during his September 15, 2025 monologue that addressed the politicization of the assassination of conservative activist Charlie Kirk,” it continues.
“ABC… pulled Jimmy Kimmel Live! and has now restored him to the air as of September 23, 2025, although the program was not available on approximately 25% of ABC affiliates – those owned by Nexstar and Sinclair.”
“The fallout from suspending Jimmy Kimmel Live! sparked criticism as an attack on free speech, triggered boycotts and union support for Mr. Kimmel, and caused Disney’s stock to plummet amid fears of brand damage and concerns that Disney was complicit in succumbing to government overreach and media censorship.”
The investors are seeking “copies of any meeting minutes, meeting agendas, and written materials” provided to the company’s board in relation to Kimmel’s suspension, with a deadline of five business days after the letter was sent on Wednesday, September 24.
If they didn’t hear back within this time frame, the letter states that the investors “reserve their rights to initiate an action compelling such production and to pursue all available remedies.”
According to Deadline, the group still hasn’t received the requested materials or heard back from Disney. Speaking about the House of Mouse’s tactics, an insider told the outlet, ”This is a game of chicken, with someone getting out the way only at the last minute. They know the stakes.”
It’s yet to be seen whether legal action will be taken against Disney.
Suspension backlash gives Kimmel a ratings boost
Despite the controversy behind-the-scenes, Jimmy Kimmel Live! continues to enjoy bumped-up ratings, with last night’s (September 29) special from Brooklyn featuring Ryan Reynolds, comedian Josh Johnson, and a music segment with Public Enemy.
It’s worth noting that the ratings have taken a big dip since last Tuesday – the first show back after the suspension. Nielsen reported that 6.26 million people tuned in that day, which dropped to 2.3 million by Thursday.
However, this figure is still significantly higher than its 1.42 million average between 2024 and 2025, and no doubt they’ve been bumped up now that Jimmy Kimmel Live! has returned to Nexstar and Sinclair affiliate holders, which account for around 20-25% US households.
Online numbers have also been high, with his latest monologue being viewed nearly one million times since being uploaded six hours again. Again, this is a contrast to his 240,000 hit average.
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