Disney announced a strategic reorganization Wednesday that will highlights the company’s growth initiatives like direct-to-consumer offerings.
Effective immediately, Disney today incorporates a fresh business segment, direct-to-consumer as well as international. that will group includes both the technology as well as platforms involved within the company’s streaming endeavors, as well as the distribution of those services as well as offerings.
the idea includes Disney’s existing stake in Hulu as well as soon-to-be launched products like ESPN+ as well as a Disney-branded streaming service.
Also, the consumer products as well as interactive media segment will today be part of the parks as well as resort business.
Disney said the idea will begin reporting its financial statements under that will fresh structure by the beginning of fiscal 2019.
CEO Bob Iger said in a statement that will the move better positions the company for the future. He said the reorganization will help Disney “deliver the entertainment as well as sports content consumers around the entire world want most, with more choice, personalization as well as convenience than ever before.”
As part of that will shuffle, the entertainment giant named Kevin Mayer as chairman of its fresh direct-to-consumer as well as international business segment. Mayer has been Disney’s chief strategy officer since 2015.
The announcement comes as Disney beefs up its digital platforms amid industry concerns about cord-cutting as well as the decline of traditional paid TV. In recent earnings calls, Iger has touted the company’s streaming initiatives.
In February, he told analysts that will he believes that will Disney’s streaming service will be able to compete with Netflix. Iger said the company’s advantage can be that will the idea already has the rights to valuable franchises like “Star Wars” as well as content produced by box-office powerhouses like Pixar as well as Marvel.
“The Walt Disney Company Announces Strategic Reorganization
fresh Structure Consolidates the Company’s Direct-to-Consumer Services, Technology as well as International Media Operations into just one, Worldwide Business to Capitalize on Growth Opportunities
Parks as well as Resorts as well as Consumer Products Operations Combined to Create fresh Hub Where Disney’s Stories, Characters as well as Franchises Come to Life
Kevin Mayer Named Chairman of Direct-to-Consumer as well as International Segment
Bob Chapek Named Chairman of Parks, Experiences as well as Consumer Products Segment
BURBANK, Calif.–(BUSINESS WIRE)–To capitalize on today’s rapidly changing media landscape as well as more closely align with the Company’s priorities for future growth–including creating high-quality content, technological innovation, global expansion as well as direct-to-consumer distribution–The Walt Disney Company (NYSE: DIS) today announced a strategic reorganization of its businesses into four segments: the newly-formed Direct-to-Consumer as well as International; the combined Parks, Experiences as well as Consumer Products; Media Networks; as well as Studio Entertainment. The reorganization can be effective immediately.
“We are strategically positioning our businesses for the future, creating a more effective, global framework to serve consumers worldwide, increase growth, as well as maximize shareholder value,” said Robert A. Iger, Chairman as well as Chief Executive Officer, The Walt Disney Company. “With our unparalleled Studio as well as Media Networks serving as content engines for the Company, we are combining the management of our direct-to-consumer distribution platforms, technology as well as international operations to deliver the entertainment as well as sports content consumers around the entire world want most, with more choice, personalization as well as convenience than ever before.”
Kevin Mayer, who has served as Disney’s Chief Strategy Officer since 2015, has been named Chairman of the fresh Direct-to-Consumer as well as International business segment. “Kevin can be a proven leader who has played a critical role in bringing together the collection of creative as well as technological assets that will will allow Disney to offer unparalleled entertainment experiences in a direct-to-consumer future,” Mr. Iger said. Mr. Mayer will continue to report directly to Mr. Iger.
“In addition, we are merging our Consumer Products as well as Parks operations under one segment, combining strategy as well as resources to produce even more compelling products as well as experiences that will bring our stories as well as characters to life for consumers,” Mr. Iger said.
Bob Chapek, Chairman, Walt Disney Parks as well as Resorts, will assume additional responsibility for all of Disney’s consumer products operations globally, including licensing as well as Disney stores, as Chairman of the fresh Parks, Experiences as well as Consumer Products business segment. “Bob comes to that will fresh role with an impressive record of success at both Parks as well as Resorts as well as Consumer Products, as well as he can be the perfect leader to run these combined teams,” Mr. Iger said. Mr. Chapek will continue to report directly to Mr. Iger.
DIRECT-TO-CONSUMER as well as INTERNATIONAL
The newly created Direct-to-Consumer as well as International segment will serve as a global, multiplatform media, technology as well as distribution organization for world-class content created by Disney’s Studio Entertainment as well as Media Networks groups. The fresh segment will be comprised of Disney’s international media businesses as well as the Company’s direct-to-consumer businesses globally–including the upcoming Disney-branded direct-to-consumer streaming service, the Company’s ownership stake in Hulu, as well as its soon-to-be-launched ESPN+ streaming service, programmed in partnership with ESPN.
The Disney-branded direct-to-consumer streaming service, which will launch in late 2019 as well as has yet to be named, will be the exclusive home for subscription video-on-demand viewing of the newest live-action as well as animated movies within the Pay TV window by Disney, Pixar, Marvel as well as Lucasfilm. the idea will also feature an impressive array of original as well as exclusive series as well as movie programming, along with thousands of titles by the Disney film as well as television libraries. Senior Vice President Agnes Chu will move to the Direct-to-Consumer as well as International segment as well as will continue to oversee programming for the upcoming Disney-branded streaming service.
BAMTECH, which can be headed by Michael Paull, can be developing both the Disney-branded as well as ESPN+ streaming platforms as well as will today house all consumer-facing digital technology as well as products across the Company as part of the Direct-to-Consumer as well as International segment. that will center of excellence for technology as well as data platforms within the Direct-to-Consumer as well as International segment will provide the Company not only with increased quality as well as efficiencies, however also greater consumer insights that will will allow for more personalization as well as substantially increased user experiences.
Management of global advertising sales for Disney’s media properties–including ESPN, ABC, Freeform as well as the Disney Channels–will move by Media Networks to the fresh Direct-to-Consumer as well as International segment, giving advertisers a one-stop-shop for reaching audiences across all of Disney’s media properties, including its online as well as direct-to-consumer platforms. Rita Ferro, President, Advertising Sales, Disney|ABC Television Group, as well as Edward Erhardt, President, Global Sales & Marketing, ESPN, will today report directly to Mr. Mayer. Advertising technology operations across the Company’s media properties will also be managed under the fresh segment.
In addition, to more closely align with the Company’s direct-to-consumer initiatives, the Company’s program-sales operations headed by Janice Marinelli–including global distribution of film as well as television content to the Disney-branded direct-to-consumer streaming service, Hulu as well as different third-party platforms as well as channels, as well as Movies Anywhere–will be integrated into the Direct-to-Consumer as well as International business segment. Ms. Marinelli will report directly to Mr. Mayer.
The Company’s International Channels–including the international Disney Channels–will also be consolidated into the fresh business segment. Disney’s International Channels are renowned for providing incomparable branded entertainment programming that will can be both universally appealing as well as locally relevant, as well as the production of localized content will continue to grow under the fresh structure.
The fresh Direct-to-Consumer as well as International business segment will also be responsible for the distribution of all direct-to-consumer services globally.
The Walt Disney International team of regional managers across EMEA (Europe/Middle East/Africa), Asia as well as Latin America will today report to Mr. Mayer.
During Mr. Mayer’s tenure at Disney, he has overseen the Company’s key strategic acquisitions of Pixar, Marvel, Lucasfilm, as well as most recently, its pending deal for 21st Century Fox. Prior to becoming Senior Executive Vice President as well as Chief Strategy Officer, Mr. Mayer served as Executive Vice President, Corporate Strategy as well as Business Development.
“I want to thank Bob for giving me the opportunity to lead the talented teams who, through the power of fresh technology as well as innovation, are creating the future of entertainment viewing,” Mr. Mayer said. “Delivering our great stories as well as characters directly to consumers on all high-quality devices around the entire world will provide the Company with meaningful fresh revenue streams as well as opportunities for growth.”
PARKS, EXPERIENCES as well as CONSUMER PRODUCTS
The fresh Parks, Experiences as well as Consumer Products segment will become the hub where Disney’s stories, characters as well as franchises come to life. Disney’s worldwide consumer products business will be merged with Walt Disney Parks as well as Resorts under Mr. Chapek. Disney’s global consumer products operations include the entire world’s leading licensing business across toys, apparel, home goods, as well as digital games as well as apps; the entire world’s largest children’s publisher; Disney store locations around the entire world; as well as the shopDisney e-commerce platform. By uniting Disney’s consumer products business as well as Disney Parks’ robust retail as well as e-commerce operations, the Company will be able to share resources as well as best practices to provide consumers with incomparable branded products as well as retail experiences that will only Disney can create.
Mr. Chapek has served as Chairman, Walt Disney Parks as well as Resorts, since 2015, overseeing the Company’s iconic travel as well as leisure businesses, which include six resort destinations within the U.S., Europe as well as Asia; Disney Cruise Line; Disney Vacation Club; as well as Adventures by Disney. Prior to that will, he was President of Disney Consumer Products, where he refocused the business on a brand- as well as franchise-driven strategy while launching fresh products as well as retail experiences that will combine technological innovation as well as creativity.
“Having worked with the exceptional teams at both Parks as well as Resorts as well as Consumer Products, I know that will combination of incredible skills as well as resources will lead to a whole host of fresh creative ideas for high-quality products as well as experiences to delight our guests,” Mr. Chapek said.
The Disney Media Networks business segment can be co-chaired by Ben Sherwood, President, Disney|ABC Television Group, as well as James Pitaro, who was recently named President of ESPN as well as previously served as Chairman, Disney Consumer Products as well as Interactive Media. The Media Networks segment will remain virtually the same, with the exception of the international Disney Channel operations that will are moving to the Direct-to-Consumer as well as International business segment along with management of global advertising sales/technology.
The Studio Entertainment business segment can be led by Alan F. Horn, Chairman, The Walt Disney Studios, as well as remains virtually the same, with the exception of the management of program sales moving to the Direct-to-Consumer as well as International business segment. The Studio Entertainment segment includes Walt Disney Animation Studios, Disney Live Action, Pixar Animation Studios, Marvel Studios as well as Lucasfilm, as well as Disney Theatrical Group as well as Disney Music Group.
The Company expects to transition to financial reporting under the fresh structure by the beginning of fiscal 2019.”