In a surprising turn of events, there has been a surge in cancellations for Hulu and Disney Plus. This surge is attributed to Elon Musk addressing companies that withdrew their advertising from X (formerly Twitter), leaving the platform in a difficult position.
Amid controversies surrounding Musk, including allegations of endorsing antisemitic content on the platform, CNBC interviewed him during the NYT DealBook Summit. The discussion revolved around the ongoing developments concerning advertising on X.
Following Musk’s contentious statement during the interview, where he called out Disney CEO Bob Iger, cancellations for Disney Plus escalated worldwide. People also began canceling their Hulu accounts, considering it a Disney product. The hashtag #Cancel was observed trending on X. This series of events led to a significant rise in cancellations.
Musk Publicly Addresses Disney CEO on Stage
In a recent turn of events, Disney and several other companies made a collective decision to cease advertising on X. During an interview earlier in the week, CNBC’s Andrew Ross Sorkin mentioned to Elon Musk that companies were departing from advertising on the platform.
In response, Musk interrupted Sorkin, expressing, “I hope they stop. Don’t advertise.” According to The New York Times, over 200 advertisers have halted their spending on X advertising in recent weeks.
When pressed twice for confirmation, Musk reiterated firmly, “If someone is trying to blackmail me with advertising, blackmail me with money, go f**k yourself.” Following a brief pause, Musk repeated, “Go f**k yourself, is that clear?” Musk’s approach to X’s ongoing advertising scenario has triggered substantial global reactions.
In a show of solidarity with the unconventional Tesla founder, individuals are cancelling their Disney Plus subscriptions following Elon Musk’s response to Disney and other companies that departed from X. Additionally, there are reports of several X users subscribing to the platform’s paid plans (Premium and Premium Plus) after sharing their cancellations of Disney Plus subscriptions as a means to support X.
For those curious about the rationale behind this support for Musk and X (formerly Twitter), it boils down to a particular sentiment.
Many perceive Musk’s actions, defending X even after numerous advertisers withdrew, as a direct endorsement of free speech. Elon Musk envisions X as a platform that champions truth-seeking (apparently). Thus, his defiance towards Disney and other companies during the CNBC interview has prompted many users to cancel their Disney Plus subscriptions, viewing Musk as a proponent of free speech advocacy.
Elon Musk’s Reply to Allegations of Antisemitism
During the interview, when pressed about allegations of antisemitism, Elon Musk clarified to CNBC, stating, “Antisemitism was not my intention.” Additionally, he took to X (formerly Twitter) to further elaborate on his stance regarding the matter. However, despite his efforts to address the issue, many companies have persisted in halting their advertising spending on X. This ongoing trend is a result of persistent controversies surrounding the X platform and Musk’s current controversial ties to antisemitic content.
Disney CEO’s Reaction to Advertising Scenario on X
At the NYT DealBook Summit, Disney’s CEO discussed the rationale behind the company’s decision to cease advertising on Elon Musk’s X (formerly Twitter). Lou Palkis, an AJL Advisory Founder & Chief Executive specializing in marketing, mentioned to The New York Times that advertisers are hesitant to return to X. He noted that the potential damage to their reputation outweighs any potential advertising benefits.
“Elon’s larger-than-life persona is strongly linked to the companies he established or owns. His public stance on the matter led us to believe that the association might not be beneficial for us.” – Bob Iger, CEO of Walt Disney.
Amid the advertising turmoil at X (formerly Twitter), Disney finds itself impacted. Interestingly, there’s a noticeable shift in support, favoring Elon Musk and X over the departing advertisers. The statement made by Musk in defense of X has led many to cancel their Disney Plus subscriptions.
Disney’s stock price has witnessed a decline of approximately 2.44% on the 5-day chart. The ongoing rift between X and Disney is expected to persist in the upcoming weeks. We’ll keep you posted on any new developments as they unfold.
What are your thoughts on Elon Musk’s defense of X and his call for advertisers to cease funding the platform’s advertising? Share your opinions in the comments below!
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