Disney is restructuring its business to focus on its streaming platforms, following the launch of its latest product Disney+ less than a year ago.
The entertainment giant announced that it is reorganising its media and entertainment business, with a focus on creating original content that will debut on its streaming and broadcast services.
As part of the changes, which are effective immediately, all distribution and commercialisation activities will be centralised in a single, global Media and Entertainment Distribution unit.
This unit will be responsible for all monetisation of content, including ad sales and distribution, and will oversee operations of the company's streaming services, such as Disney+ and Hulu.
The shake-up from Disney, which sent the company’s shares up more than 5%, comes amid a pandemic which has delayed cinema release dates, disrupted production, and at the same time boosted the success of its streaming service, particularly Disney+, as people stay indoors more.
“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,” says Bob Chapek, Disney CEO.
“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. 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.”
In August Disney said that paying subscribers for Disney+ had reached 60.5 million after launching in international markets, including Australia, from November last year.
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