Disney is not sexualizing children, CEO Bob Iger says
ORLANDO - Disney CEO Bob Iger said Disney wants to avoid the so-called culture wars but defiantly pushed back against right-wing critics who have claimed Disney is adding inappropriate sexual content to its programming.
"The notion that Disney is in any way sexualizing children is preposterous and inaccurate," Iger said in a CNBC interview Thursday.
Some Republican politicians, including Gov. Ron DeSantis, have echoed right-wing media attacks on Disney. The 2024 presidential candidate, who has waged his own battle against Disney for more than a year now, in March said Disney adds a lot of "sexuality into the programming for young kids." Former Fox News host Tucker Carlson has said Disney has "a sexual agenda for six-year-old children."
The attacks began in full force in March 2022 after Disney executives spoke out against a Florida law that bars schools from teaching about sexual orientation and gender identity in kindergarten through third grade. Critics labeled it as the "Don't Say Gay" law. Florida has since expanded the law to prohibit instruction on sexual orientation and gender identity up to eighth grade.
Florida and Disney have since been engaged in a rapidly escalating legal battle over control of a special tax district that includes the Disney World theme park. DeSantis has called Disney a "woke" corporation and has tried to make his verbal and legal attacks on Disney a winning political message.
Iger on Thursday said the company was exercising its constitutionally protected right to free speech when it was speaking out against the governor's policy - even though he acknowledged his predecessor, former Disney CEO Bob Chapek, didn't handle the controversy well.
"We are concerned [DeSantis] has decided to retaliate against the company for taking a position on pending legislation," Iger said.
Amid the barrage of right-wing attacks on Disney, protesters waving Nazi flags gathered last month outside Disney World, an act Iger called "horrifying, quite frankly."
"It's concerning to me that anyone would encourage a level of intolerance - of even hate - that could become dangerous action," Iger said.
Iger said the company's focus remains on storytelling rather than engaging in a war of words with right-wing media and politicians. Similar campaigns have targeted Bud Light, Target, and other major brands for partnering with LGBTQ+ influencers or selling certain Pride-themed merchandise.
"The last thing that I want for the company is for the company to be drawn into any culture wars," Iger said. "Our goal is to tell wonderful stories and have a positive impact on the world."
Selling TV networks
Iger said his company will be "expansive" in its thinking about the future of its linear TV networks, acknowledging that a sale remains an option.
Iger said that Disney has to be "open minded and objective about the future of the business," adding that networks like these "may not be core to Disney." Disney owns several linear TV channels, including ABC, FX, National Geographic, and Freeform.
Programming produced by those networks might be core to Disney, but the distribution model is "definitely broken," Iger said.
"The disruptive forces that have been preying on that business are greater than I thought," Iger said. "We have to come to grips with that."
Linear business is in decline as more people cut the cord and watch programming on streaming platforms.
Disney also owns ESPN, but Iger said that he's "bullish" on sports and wants to stay in the sports business. He added that Disney looking for strategic partners that could help the company with distribution and content, including assistance in purchasing increasingly expensive licensing deals for live sports, including the NFL and NBA.
Contract extension
On Wednesday, Disney's board unanimously voted to extend Iger's contract for another two years - through the end of 2026. He joked to CNBC that he liked retirement and that it was a "good 11 months." Iger rejoined Disney in November 2022, replacing Bob Chapek, who had a choppy run at the helm.
He said he wanted to stay on at Disney for longer than anticipated because he has a "deep passion" for the company, but needs more time because "In some ways the challenges are greater than I anticipated."
Actors strike
Remarking on a looming actor's strike and the ongoing writers' strike, Iger said he found the labor action "very disturbing" because of the growing challenges the media industry faces.
"This is the worst time in the world to add to that disruption," he said, noting the entertainment industry faces economic challenges and is still battling back from audience deterioration during the pandemic.
"And they are adding to a set of challenges that this business is already facing that is frankly quite disruptive and dangerous," Iger added.
Iger said he was pleased that Hollywood was able to reach a deal with the Directors Guild and wants to make a similar deal with both the writers and actors. But he said the groups' expectations are "just not realistic."
"You have to be realistic about this business environment," Iger said. "It's a shame. It's really a shame."
A union representing about 160,000 Hollywood actors is poised to go on strike after talks with major studios and streaming services have failed. The actors are demanding increased pay, as well as progress on residuals, particularly on streaming services. There are also concerns about the emergence of artificial intelligence.
Parks and politics
This summer, wait times for rides and attractions at both resorts have shortened, according to analysts who track theme park attendance. However, Iger said that he is "not at all concerned" about the overall decline in the theme park business.
Iger said he believes declines in attendance are a temporary issue and a problem that exists for other competitors' parks as well. He noted, for example, that hotel tax revenue in Florida has been down about 6% this year and competitors are offering discounts at their parks.
Florida opening up early compared to other states during the pandemic. That sparked demand, which has leveled off as more competition from other states opened up, Iger said.
