Disney’s financial statements prove company became 'too woke,' will shake up corporate America: expert
House of Mouse acknowledged that its focus on cultural and social issues impacted profits
{{#rendered}} {{/rendered}}The Walt Disney Company's recent admission of becoming too woke will "send ripple effects throughout all of corporate America," according to Consumers' Research executive director Will Hild.
"We saw an astonishing revelation from Disney, an admission that they've basically become too woke, and they know it," Hild told FOX News Digital.
Hild explained that the Securities and Exchange Commission (SEC) requires disclosures from publicly traded companies, which are referred to as 10-K forms. The form is intended to disclose both the company’s financial records and reveal any ongoing issues that may impact shareholders, but Disney’s 10-K stunned observers.
{{#rendered}} {{/rendered}}The Walt Disney Company's recent admission will "send ripple effects throughout all of corporate America," according to Consumers Research executive director Will Hild. (Jaime Nogales/Medios y Media/Getty Images)
"Disney just admitted in their recent 10-K that they have become disconnected from their consumers' viewing desires and habits. And they specifically noted some of the cultural distinctions between the movies that they've been making, including all this woke imagery, woke themes, and woke politics and their consumers who seem to be tired of all this and are no longer going to see their movies that are increasingly bombs at the box office," Hild said.
The 10-K stated, "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."
{{#rendered}} {{/rendered}}"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," Disney wrote.
Disney honchos added that "the success of our businesses depends on our ability to consistently create compelling content" and "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."
WOKE DISNEY’S YEAR OF ENDURING BOX OFFICE BOMBS, SUBSCRIBER LOSSES AND LAYOFFS
{{#rendered}} {{/rendered}}Disney had a disastrous summer with three box office bombs; "Indiana Jones and the Dial of Destiny," "Elemental" and "Haunted Mansion." (Screenshots/Walt Disney Company)
Hild, whose Consumers’ Research is on a mission to "fight woke corporations," believes it'll be interesting to see if this causes Disney to change their business plan going forward. He said that if you "read between the lines" the stunning admission could actually be tied to its ongoing legal battle with Florida.
"What this disclosure may be about is Disney saying, ‘No, no, no, we're not malicious. We're just incompetent. We've been trying to connect with consumers. We just can't do it,’" Hild said.
"There may be a little bit of legal maneuvering here that has to do with this admission," he continued. "But nonetheless, it's an incredible admission from a company that's supposed to be in the business of delivering reliable content that consumers want to see."
{{#rendered}} {{/rendered}}Regardless, Hild believes Disney’s admission will have lasting ramifications across American business.
"This is going to send ripple effects throughout all of corporate America and certainly to smaller companies that are in the business of producing content. Increasingly, companies are going to be on notice that they're aware that this is an issue," Hild said. "If it's an issue with a company as big and as much of a juggernaut as Disney, then what excuses do other studios have that have been struggling to get people to come see, you know, woke movies and buy woke products?"
DISNEY'S 'STUNNING' FINANCIAL STATEMENTS SHOW COMPANY HAS RISKED PROFITS FOR WOKE POLITICS: TED CRUZ
{{#rendered}} {{/rendered}}Disney stated "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." (Roberto Machado Noa/LightRocket via Getty Images)
The Walt Disney Company did not immediately respond to a request for comment.
Disney made headlines with its battles with Florida Gov. Ron DeSantis, R., over his legislation critics derided as "Don't Say Gay." The company has taken some criticism from conservatives over "diversity casting" and LGBTQ themes in some of its recent films and reboots. CEO Bob Iger said last year at a town hall that his goal was to quell controversy for the good of the company.
Sen. Ted Cruz, R-Texas, Cruz told FOX News Digital that Disney has "learned the hard way that actions have consequences."
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Fox News’ Kristine Parks contributed to this report.