Why Walt Disney Company seem to be struggling suddenly

economictimes.indiatimes.com:

Walt Disney Company is one of the most successful media and entertainment companies in history. It's a vast conglomerate that stretches from cartoon characters and animation films that much of the world grew up with, from Snow White and the Seven Dwarfs to Beauty and the Beast, to news channels and the world's most famous theme parks. So, why does this company seem to be struggling suddenly?

According to at least one estimate, Disney may have lost close to $900 million on its recent films.

The company still makes profits. But its net profit margin for the quarter ended June 2023 was 2.5% — nowhere near the margins of 20% and above that it enjoyed for decades. Market capitalisation has fallen more than 50% in the last two years.

What's going on?

Many analysts believe that the company's troubles are best explained by the popular social media meme: 'Get woke, go broke.'

Disney has always been a quintessential family entertainment company. Parents all over the world have been taking their children to watch its movies with full trust that the films would be enjoyable for the kids and also — I can't think of a better word — wholesome. Mowgli will prevail over Sher Khan and then fall in love with a village girl at first sight.

Nemo will be found and rescued. Simba will regain his rightful kingdom.

Yet, in the last two years, the company has been straying from its straight path.

Take the 2022 film Lightyear, a spin-off from the Toy Story franchise that is worth billions of dollars. It featured a lesbian kissing scene that shocked many family audiences and barely recovered its production budget.

Coming out the same year, Strange World featured a gay teen romance and was accused of trying to teach little children about sexual