Disney to focus on streaming as part of major reorganization
Oct 14 2020
The entertainment giant tapped longtime company executive Kareem Daniel to lead the Media and Entertainment group, which will manage operations of the streaming services and manage for profit and loss across content creation, including for movie productions, television shows and sports programming.
On Monday afternoon, The Walt Disney Company announced a major restructuring of its media and entertainment divisions in order to put themselves in a better position for their direct-to-consumer approach.
"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", Bob Chapek, Disney CEO, said in a statement.
The company recently said it would build a general entertainment streaming service - separate from Disney+ - for countries outside the USA, with content from units including ABC, FX and 20th Century Television.
Overseeing operations for this singularly massive new operational construction shall be Kareem Daniel, who beforehand helmed the corporate's client merchandise, video games and publishing operations. In August, Disney reported it had more than 100 million paying subscribers on its platforms, and over half of those were also customers of the flagship Disney Plus service. The group will work in close collaboration with the content creation teams on programming and marketing. The three content-creation groups will report directly to CEO Bob Chapek alongside the distribution team.
Chapek concluded by saying that Disney wants to continue giving consumers the option of watching movies in theaters, "But at the same time, there's a lot of consumers that want to experience movies in the safety, comfort, and convenience of their own home".
Deliberate theatrical releases of would-be tentpole movies like "Black Widow" have been rescheduled, whereas different movies together with "Mulan" and the upcoming Pixar movie "Soul" are seeing their first runs on Disney's streaming service, Disney+. Meanwhile, a new distribution group will centralize how the content is sold and oversee streaming operations. The new system, he noted, will allow creative executives to focus on what they do best - making movies and TV shows - and let others at the company worry about how the content goes out into the world.
Visit Business Insider's homepage for more stories. However, Monday's news did not include changes to that payment. The news comes as more and more viewers gravitate toward streaming services, and investors urged the company to invest more heavily in the direct-to-consumer business.
As part of the shift, Disney will centralize its media businesses into a single organization that will handle Disney+, content distribution, and ad sales, CNBC reported. Campbell will report directly to Chapek on all matters related to worldwide operations but will report to Daniel when it comes to Disney, Hulu and ESPN.
Disney also projected that Hulu will grow to between 40 million and 60 million subscribers and ESPN+ will grow to between 8 million and 12 million by 2024.
Disney+ has just become the focus of the Walt Disney Company, and to discuss that and give people a preview of what's to come; Disney will hold an Investors Day on December 10th. The company is now anticipating a change in its financial reporting to reflect these changes starting in the first quarter of fiscal 2021.