Walt Disney announces reorganization to focus on streaming

Disney is going all-in on streaming media. 
On Monday, the company announced a massive reorganization of its media and entertainment business that will focus on developing productions that will debut on its streaming and broadcast services. Disney’s media businesses, ads, and distribution, and Disney+ will now operate under the same business unit, the company said.
Its major reorganization comes just days after activist investor Dan Loeb, a major investor in the company through his Third Point Capital hedge fund, called on Disney to cancel its dividend and redirect more investments into streaming.
Wall Street has already given its seal of approval to Disney’s new move, sending the share up nearly 6% in after hours trading.
Disney’s announcement follows a significant reorganization of its release schedule to address new realities including a collapsing theatrical release business; production issues; and the runaway success of its streaming service — all caused or accelerated by the national failure


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Disney Reorganizes To Focus on Streaming, Direct To Consumer

Disney is restructuring its media and entertainment divisions, as streaming becomes the most important facet of the company’s business. From a report: On Monday, the company revealed that in order to further accelerate its direct-to-consumer strategy, it would be centralizing its media businesses into a single organization that will be responsible for content distribution, ad sales and Disney+. The move by Disney comes as the global coronavirus pandemic has crippled its theatrical business and ushered more customers towards its streaming options. As of August, Disney has 100 million paid subscribers across its streaming offerings, more than half of which are subscribers to Disney+. “I would not characterize it as a response to Covid,” CEO Bob Chapek told CNBC’s Julia Boorstin on CNBC’s “Closing Bell” Monday. “I would say Covid accelerated the rate at which we made this transition, but this transition was going to happen anyway.”

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Original URL: http://rss.slashdot.org/~r/Slashdot/slashdot/~3/eGdpr5NUs7Q/disney-reorganizes-to-focus-on-streaming-direct-to-consumer

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