Citigroup's Jason Bazinet: Disney’s Kimmel fallout is 'just a blip'

Disney's Response to Controversy - The company believes the controversy surrounding the Kimmel suspension will have minimal financial impact, similar to a past dispute in Florida [3][4] - NextStar's press release suggests a willingness to reinstate the Kimmel Show, potentially providing a solution that satisfies all parties involved [5][6] - The company does not believe the current situation will significantly tarnish Bob Iger's legacy, viewing it as a minor issue [12][13] Streaming Strategy - Disney is increasing the price of Disney Plus and Hulu subscriptions starting October 21st [1] - The company's streaming apps are positioned in the middle ground regarding usage and cost per minute, requiring increased content investment to boost engagement and reduce churn [15][16][17] - Disney Plus is currently viewed as a specialized niche app, particularly for children, rather than a complete pay TV substitute [17] Potential Future Scenarios - The analyst raises the hypothetical possibility of bifurcated news programming, with different versions of ABC tailored to different audiences [7][8] - There is speculation about ABC shuttering its legacy network to avoid FCC regulations, a move the market might accept given its focus on parks and streaming [9][10]