Exclusive: Disney's DEI & Diversity Moves Driven In Part By Government Inquiry

One of the best things about writing my daily newsletter (toomuchtv) is that there is an amazing range of people subscribing to it on the industry side. So a lot of tips pop up that I might have struggled to otherwise uncover.

When I wrote several days ago about Disney's decision to scale back on DEI issues and diversity, I heard from several people working at the company who told me "Well, there's more to this story than what Axios reported."

While Disney had been working on changes to the employee guidelines internally for months, sources at the company tell me the timing was prompted by an inquiry from the FCC about Disney's DEI and diversity initiatives. The belief within the executive ranks was that making the changes and making sure it was seen by Trump Administration officials (in this case, by leaking it to Axios) would put off any formal investigation similar to the one just launched against Comcast.

A source at the FCC who is familiar with the thinking at the agency told me that "it was a win-win. Disney very publicly folded. But that still gives us the ability to block future business moves by the company that we believe are anti-consumer or anti-American."

One Disney source who was directly involved in some of the decision making of the changes told me the moves were controversial internally. And that some people argued against some of the moves because they felt performative and wouldn't have any real impact on whether or not the FCC or some other government agency came after Disney in the future. There was also a widespread feeling that the moves would have a strong negative impact inside the company.

"We're the perfect target," I was told. "Disney is a beloved media company that is seen as being family-friendly. So coming after us shows they'll come after anyone and that's useful." I was also reminded that while Disney initially stood firmly against Florida Gov. Ron DeSantis when he complained about the company's support of the so-called "Don't Say Gay" law, incoming CEO Bob Iger made nice with critics, reassuring opponents that Disney wasn't interested in getting involved in social or culturally uncomfortable issues.

"I have sympathy for Iger," a Disney streaming executive told me. "The company is legitimately concerned about being sued by the government. I think that's a real possibility. But folding your hand so early just makes us seem weak and complacent."

I have also heard recently from some people on the creative side, who have noted that while no one is being told not to pitch diverse projects, there is an underlying understanding of what they are looking for. An upper-level writer who recently pitched a project to several streamers noticed a trend in the feedback for executives. "I was told they weren't looking for strong visions right now, or stories that were too personal or focused on an experience that wasn't universal," they said. "It was clear that they didn't want anything right now that was going to lead to complaints from anyone. I was never told 'this is too diverse' or 'does it have to be a gay love story?' But it was pretty clear to me that was what they meant."

Do you have something to add to this or a story of your own to share? Reach out confidentially at rick@allyourscreens.com or on Signal at allyourscreens.24