Disney has announced a reorganization of its media and entertainment divisions, with plans to focus more on streaming.
Under the new structure, the company’s three content groups – Studios, General Entertainment, and Sports – will produce and deliver content across theatrical, linear, and streaming platforms.
“Given the incredible success of Disney+ and our plans to accelerate our direct-to-consumer business, we are strategically positioning our Company to more effectively support our growth strategy and increase shareholder value,” said CEO Bob Chapek.
The reorganization and new focus on streaming comes after Disney faced setbacks related to COVID-19, while Disney+ saw accelerated growth. Earlier this month, we reported on MoffetNathson’s projection for Disney+ to reach 155 million subscribers by 2024.
“Managing content creation distinct from distribution will allow us to be more effective and nimble in making the content consumers want most, delivered in the way they prefer to consume it,” Chapek continued. “Our creative teams will concentrate on what they do best—making world-class, franchise-based content—while our newly centralized global distribution team will focus on delivering and monetizing that content in the most optimal way across all platforms, including Disney+, Hulu, ESPN+ and the coming Star international streaming service.”
The new structure went into effect with the announcement Monday and will be reflected in financial reporting beginning in Q1 2021. Disney will hold a virtual Investor Day on December 10 where we expect to hear more details about the company’s focus on streaming.