Disney's tough year continues: Kimmel suspension, Snow White flop and a string of setbacks
ABC suspends Jimmy Kimmel amid backlash; Snow White and Captain America underperform; streaming prices rise as the House of Mouse faces broader industry headwinds ahead of Avatar’s December release.
Disney is enduring what observers describe as its most challenging year in memory, facing a cascade of setbacks across film, television and streaming that have frustrated investors and fans alike. The string of troubles has even drawn comparisons to a blockbuster in reverse, with industry chatter framing the year as a nonstop barrage of hits and misses at the Mouse House. One high-profile catalyst arrived this month when ABC suspended longtime late-night host Jimmy Kimmel indefinitely after backlash over remarks about an assassination reference. The move, unprecedented in recent staff history at the network, reverberated through Disney’s corporate image and accelerated a broader debate about accountability in media.
The suspension came as Disney grappled with subscriber uncertainty and a rapid escalation in streaming pricing. Within days of the decision, many Disney+ and Hulu customers canceled or paused their accounts, and the company moved to raise prices on both services in a bid to stabilize a business segment that has lagged behind projections this year. Analysts noted that the timing amplified concerns about the company’s ability to sustain momentum across its direct-to-consumer portfolio as it faces a crowded competitive landscape.
The year’s most visible misfires at the film level further complicated Disney’s healing narrative. In March, Snow White and the Huntsman star Rachel Zegler led a live-action remake that drew much attention before opening to a global box office of about 205 million dollars, a figure industry observers described as a disappointment for a franchise-driven behemoth of Disney’s scale. Critics debated whether the disappointing performance reflected controversy surrounding Zegler’s political stance or perceived quality issues in the film itself. The same period saw Marvel Studios’ Captain America: Brave New World fail to connect with audiences, compounding concerns that high-profile IP fatigue had begun to wear on the studio’s most reliable engines. A separate release, Fantastic Four, earned decent reviews but did not translate into box-office strength, a contrast to rival Warner Bros. and DC titles that had stronger openings and legs in certain markets.
For a company that once counted on Marvel, Star Wars, Pixar and a robust slate of prestige projects to power annual growth, the past months have underscored a more complicated reality: audiences appear to be tiring of familiar IP, and the market for large-scale franchise films has become increasingly competitive and volatile. Disney’s own internal narrative reflects a shift in emphasis from risk-taking, original storytelling to more cautious, franchise-backed bets, a move that some industry observers say could slow innovation in the near term. The pattern has also spilled into prestige pictures under the Searchlight Pictures label, where Disney’s output has struggled to maintain the same awards-season footprint it once enjoyed. Films like Rental Family, Brendan Fraser’s Toronto-premiered drama, and Bradley Cooper’s recent New York Film Festival entry Is This Thing On? have not broken through the awards conversation with the same impact as in prior years.
The company has not found a single, clear answer to the question of how to re-ignite enthusiasm for an ever-expanding catalog of IP. The overhang of controversy surrounding Snow White’s star, combined with criticism of the company’s handling of streaming price changes and a perception that the top-tier tentpoles are taking as long to materialize as they do to fade from view, has left Disney facing a tricky balancing act as it plans its fall and winter slate.
Executives have pointed to Avatar as a potential stabilizer. James Cameron’s Avatar franchise remains a rare constant in Disney’s financial calculus, and the upcoming release Avatar: Fire and Ash is anticipated to drive a significant portion of the year’s box-office totals. The December release is forecast to be the single biggest business event for Disney in the next 12 months, potentially offsetting some of the turmoil elsewhere in the company.
As Disney charts its path forward, analysts caution that the year’s events may reflect longer-term strategic questions rather than a short-term hiccup. The company has faced leadership scrutiny amid a labor-market environment that rewards high-margin entertainment packages, while audiences weigh value and quality in a crowded media ecosystem. Still, supporters note that Disney’s ability to pivot around Avatar and continue to leverage its expansive IP library could help the company regain footing as the year closes.
amid leadership and strategy shifts, Disney has publicly emphasized its ongoing commitment to its core franchises and talent relationships, signaling that significant reinvestment in storytelling and technology remains a priority even as it navigates a difficult market. The coming months will test whether the studio can translate any near-term volatility into a sustainable, longer-term rebound.
As Disney continues to pursue a path that blends legacy franchises with new storytelling under the watch of chief executive Bob Iger, the company’s next chapter may hinge on its ability to monetize and refresh its vast catalog without eroding audience trust. The year 2025 has already proven to be a test case for whether the studio can weather reputational and commercial strains while maintaining the creative energy that has long defined its brand.
The broader industry will watch closely how Disney responds to these pressures, and whether Avatar’s return can reestablish momentum for a company that has faced a simultaneity of public missteps, audience fatigue and competitive headwinds. If the strategy holds, the next wave of releases could rekindle excitement and restore box-office confidence, even as the memory of this difficult year lingers as a context for executives and fans alike.
The year’s pressure points also highlight the delicate balance producers must strike between risk and reward in a landscape where streaming subscribers expect value and filmgoers demand originality. For Disney, the path forward will involve reconciling the appetite for familiar, big-budget franchises with a renewed emphasis on fresh ideas and diverse storytelling that can attract both traditional fans and new audiences.
Ultimately, the company’s trajectory will be influenced by its capacity to translate Avatar’s anticipated box-office surge into broader, sustainable growth across all divisions. In the meantime, executives and creators alike will need to navigate a year in which one battle after another has tested Disney’s ability to adapt while preserving the identity that has long defined the brand. The coming months will determine whether this year’s turbulence will fade into a strategic pivot, or mark the beginning of a longer period of disappointment for a studio accustomed to setting the pace in culture and entertainment.
