The Walt Disney Company has announced a strategic reorganisation of its media and entertainment businesses, effective immediately.
In a statement, it says that under the new structure, Disney’s world-class creative engines will focus on developing and producing original content for the company’s streaming services, as well as for legacy platforms, while distribution and commercialisation activities will be centralised into a single, global Media and Entertainment Distribution organisation.
Disney adds that the new Media and Entertainment Distribution group will be responsible for all monetisation of content—both distribution and ad sales—and will oversee operations of the company’s streaming services. It will also have sole P&L accountability for Disney’s media and entertainment businesses.
The creation of content will be managed in three distinct groups—Studios, General Entertainment, and Sports—headed by current leaders Alan F. Horn and Alan Bergman, Peter Rice, and James Pitaro. The Media and Entertainment Distribution group will be headed by Kareem Daniel, formerly president, consumer products, games and publishing. All five leaders will report directly to Bob Chapek, CEO, The Walt Disney Company. Disney Parks, Experiences and Products will continue to operate under its existing structure, led by Josh D’Amaro, chairman, Disney Parks, experiences and products, who continues to report to Chapek. Rebecca Campbell will serve as chairman, international operations and direct-to-consumer. Bob Iger, in his role as executive chairman, will continue to direct the company’s creative endeavours.
Chapek said: ‘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.
“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 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”.
Under the new structure, the company’s three content groups will be responsible and accountable for producing and delivering content for theatrical, linear and streaming, with the primary focus being streaming services: Studios, General Entertainment and Sports.
The Media and Entertainment Distribution group, led by Kareem Daniel, a 14-year veteran at Disney, will be responsible for the P&L management and all distribution, operations, sales, advertising, data and technology functions worldwide for all of the company’s content engines, and it will also manage operations of Disney’s streaming services and domestic television networks. The group will work in close collaboration with the content creation teams on programming and marketing.
With the reorganisation, the Direct-to-Consumer and International business will no longer be managed on a combined basis. In Campbell’s role leading international operations, she will be responsible for coordinating and integrating activities across the various business units in each market to best represent the company’s overall interests and will report to Chapek. In her role leading direct-to-consumer operations for Disney+, Hulu and ESPN+, she will report to Daniel.
The company expects to transition to financial reporting under this structure in the first quarter of fiscal 2021.
It will hold a virtual Investor Day on December 10, where it will present further details of its direct-to-consumer strategies.
