End of an Era: The Real Reason Why National Geographic Is Shutting Down
On June 28th of 2023, a company with a century-long legacy laid off its remaining writers, potentially marking the end of an era. Ever since Disney acquired Nat Geo in 2019, there have been several cost-cutting measures, including layoffs. However, this particular round of layoffs may have dealt a final blow to the company’s future.
Nina Strochlic, a writer and editor at Nat Geo, expressed her sentiments on Twitter, stating, “It’s been an epic run, @NatGeo. My colleagues and I were unbelievably lucky to be the last-ever class of staff writers.”
Reasons behind the closure
1. The fall of Disney+ Hotstar
Disney’s subscribers started to decline in early 2023, and a major contributing factor to this decline is the Indian Premier League (IPL), which Disney had been streaming. With the streaming rights shifting to Jio, a significant number of Indian subscribers were influenced to switch platforms. Consequently, Disney’s Indian subscriber count plummeted from 61.3 million to 52.9 million, resulting in a substantial loss of 8.4 million subscribers. In India alone, Disney lost 1,260 crore rupees (approximately $152 million) in annual revenue. (calculations based on the yearly subscription cost to Disney+ Hotstar Premium; ie, ₹1500 per person)
A couple of years ago, Disney decided to stop licensing its content, including the Marvel Universe, to major streaming platforms like Netflix and Amazon. This ‘strategic’ decision had resulted in the relinquishment of potential revenue worth billions of dollars. By retaining exclusive rights to their content, Disney aimed to consolidate its properties. To say this backfired on them is an understatement.
2. DeSantis law suit
Recently, Disney abandoned its ambitious $1 billion office complex project in Orlando, which would have relocated over 2,000 jobs from California to Florida. This unexpected decision was primarily attributed to the legal challenges posed by the DeSantis lawsuit concerning the closure of the Lake Nona Complex. As a result, Disney was compelled to halt the project, leading to the loss of a significant opportunity for job creation and economic growth in Orlando.
3. The decline of Disney theme parks
Pete Werner, the operator of the travel agency Dreams Unlimited Travel, recently expressed his concerns about the increasing complexity of planning a Disney World vacation. According to Werner, while the parks and resorts have traditionally been a reliable source of satisfaction for his agency’s clients, he believes that this may change if Disney does not alter the direction of its parks. One particular area of concern raised by Werner is the steep rise in room prices, which has caused customers to question whether a Disney vacation still offers a good value proposition.
4. Loss in interest for reading
National Geographic recently shut down production in the US and a major contributing factor could be the declining interest in reading books or picking up magazines. The shift in reading habits and preferences has created challenges for print media outlets, and Nat Geo may have faced similar obstacles. As readers gravitate towards digital platforms and consume content in alternative ways, traditional print publications like magazines have experienced a decrease in readership. This changing landscape could have influenced the decision to halt production in the US for National Geographic.
In conclusion:
Disney has been facing a whole host of problems over the past year, ranging from lawsuits to dissatisfied customers, making it one hell of a rough year for the company.
I am certain that National Geographic remained profitable, but due to cost-cutting measures, Disney has made the decision to shut down not only National Geographic but also a vast number of channels under 21st Century Fox. They also shut down channels like Disney Junior, National Geographic People, Star Sports, and many others.
We may have just lost a renowned publishing house. My only hope is that we do not lose Disney altogether, as our cherished childhood memories could be lost in the process as well.
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