Disney is reorganising its media and entertainment business, with attention going more to its streaming services, such as Disney+. Under the new structure, the company will split content creation into three divisions. Distribution and commercialisation activities will meanwhile be centralised into a single, global Media and Entertainment Distribution group, also responsible for ad sales and overseeing operations around streaming services.
The decision follows the rapid growth in its SVoD service Disney+, the impact of the coronavirus crisis on the traditional TV and cinema businesses, and a push for shareholders to accelerate growth in the streaming market. Disney CEO Bob Chapek said the idea is have the company’s creative teams make “world-class, franchise-based content, while our newly centralised global distribution team will focus on delivering and monetising that content in the most optimal way across all platforms, including Disney+, Hulu, ESPN+ and the coming Star international streaming service.”
Content creation will be divided into three distinct groups, namely Studios, General Entertainment and Sports, headed by current executives Alan Horn and Alan Bergman, Peter Rice and James Pitaro, respectively. The Media and Entertainment Distribution group will be led by Kareem Daniel, the former president of Consumer Products, Games and Publishing. All five executives will report directly to Chapek.
Disney Parks, Experiences and Products will continue to operate under its existing structure, led by Josh D’Amaro. Rebecca Campbell will remain as chairman of International Operations and Direct-to-Consumer. Bob Iger, in his role as executive chairman, will continue to direct the company’s creative endeavors.
Specifically, Studios will focus on creating branded theatrical and episodic content based on Disney franchises, for cinemas, Disney+ and other streaming services. The group will include the content engines of The Walt Disney Studios, including Disney live action and Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios, Lucasfilm, 20th Century Studios and Searchlight Pictures.
General Entertainment will focus on creating general entertainment episodic and original long-form content for Disney’s streaming platforms and cable and broadcast networks. The group will include the content engines of 20th Television, ABC Signature and Touchstone Television; ABC News; Disney Channels; Freeform; FX; and National Geographic. Sports will put its attention on ESPN’s live sports programming, as well as sports news and original and non-scripted sports-related content, for the cable channels, ESPN+, and ABC.
The Media and Entertainment Distribution group will be responsible for the P&L (profit and loss) management and all distribution, operations, sales, advertising, data and technology functions worldwide for all of the company’s content engines. It will also manage operations of the company’s streaming services and domestic television networks.
Changes to take immediate effect
With the reorganisation, set to take effect immediately, the Direct-to Consumer and International business will no longer be managed on a combined basis. Financial reporting under the structure will begin in the first quarter of next year. Disney is planning to hold a virtual Investor Day on 10 December, where it will present more information on its direct-to-consumer plans.
