For Disney and Netflix Woke Don't Work

In their quest to appease ultraliberal social norms and dictates both Disney and Netflix have gotten on the wrong side of history.

Last year I authored an essay entitled "Woke Don't Work" , in it I explained that adoption of woke causes does nothing to enhance a company's revenue and may, in fact, hurt it. How much pain will Disney and Netflix suffer from their woke posturing is significant.

Let's take Disney first. Over the last decade, Disney has become more liberal in embracing social causes and woke positions. Yesterday, that all came to a head when the Florida State Legislature passed a bill ending Disney's special tax privileges and self-governing perks that were established years ago when Walt Disney was building Disney World. Repealing these corporate perks will cost Disney tens of millions.

This all occurred last month when Disney went full-out in denouncing a State law that prohibited elementary schools from teaching sex education to children 8 and under. Disney received wide condemnation for this. Why Disney management feels the need to get involved in these woke issues is beyond reason.  However, they will suffer the consequences. Disney stock has gone from a high of 185 to its current price of 121 or a 35% loss in value over the last 12 months, my prediction is that it will trend lower given its social posture and the inflationary economy we find ourselves in - which is principally due to the Biden administration's war on fossil fuels.

Netflix has faired much worst. Their capitulation to Hollywood's wokism by producing content that is geared toward the left politically has gotten Netflix a decrease in subscriptions for the first time in its history. Its stock price bears this out. Over the last year Netflix stock price has gone from $687 to $218 or an eye-popping 69%. 

Corporations need to learn that taking on social or political issues is risky and does not to enhance their bottom line or their acceptance by consumers. Being good corporate citizens is a must for any company of size but totally embracing left-leaning political causes is dangerous and demonstrates a high degree of mismanagement.

Wokism can be used as a marketing tool but with the caveat that its use rquires carefull research and a light touch.

Jim Lavorato

Captain America Comic Fetches $3.1 Million

 

An 'almost' mint #1 issue of 'Captain America' sold for $3.1 million last week. At 82 years of age, the comic's cover depicts Cap America 'powing' Hitler.

Captain America is the story of a weak-kneed man, Steve Rogers, who is injected with a serum that transforms him into a super-soldier. An instant hit, upon its debut, only three copies in near mint condition exist of the thousands published in 1940. 

The $3.1 million price tag is the 3rd highest recorded. A comic featuring the first appearance of Spider-Man sold for $3.6 million in 2021, while an Action Comic #1 sold for $3.2 million in 2014.

China Gives Hollywood The Bum's Rush

 

For years, Hollywood studios have wooed China - and the CCP knew just how to play them. Like dangling a pork chop in front of a hungry dog China promised a huge box office. And, like many industries before and now, there wasn't a Chinese apple that wouldn't be shined or a boot that wasn't licked as the studios aided China in building new production facilities, readopting plots, rewriting scripts, edited films, and generally kowtowing to every Chinese censors' wish. Now, Chinese-produced films are breaking box office records while Hollywood films are shunned. 

You can blame it on a new wave of Chinese nationalism but this scenario has been played out many times before. In 2021, only 20 U.S. titles were released in China, representing only 12% of the total Chinese box office. In 2012, for example, Hollywood films garnered 48% of the box office and in 2016, 36%. It has been a steady downtrend which will continue.

There was much hype over the scale of the Chinese market by H'wood. The studios sadly and naively thinking they would dominate it. Now, the few Western films that are screened are highly censored and their releases as to when and where are dictated. 

There is no doubt that the Chinese movie market is the largest on the planet but in reality, the notion of  Hollywood grabbing a large share of it is but a dream! Perhaps the studios will finally learn that the CCP doesn't care for their social views, and wokeness even if they bow to or dismiss China's multitude of social, moral, political, and environmental sins there is still no room for them at the table.

China has given Hollywood the bum's rush and deservedly so. Fiascos, such as the 'slap' incident at the Oscars, or Amy Schumer suggesting that President Zelensky leave Ukraine to make a speech at the Academy Awards while waging a war with Russia demonstrate how out of touch with reality the Hollywood glitterati is.

"Sorry,  I can't make it I'm in the middle of a war"

One would have thought that Western companies have learned their lessons when it comes to conducting business in China - but I'm afraid that's not the case. Just yesterday, the CCP informed Tim Cook, CEO of Apple, that Apple would have to produce the chips that run iPhones in China, hmmm sounds familiar.