Streaming – Disney reorganizes its business parts to focus on streaming
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The streaming service was first launched in 2019 in November, just over two years after the announcement.
Disney first announced its intention to enter the streaming market in 2016 by acquiring a minority stake in streaming technology developer BAM Tech.
The Walt Disney Company is executing one of its most extensive interior renovations ever. The goal is to emphasize more on the world of video streaming.
The company said that it intends to combine all of its entertainment businesses into one organization.
Instead of acting as standalone companies, the company’s film studios, sports content providers, entertainment groups, and direct-to-consumer products (Disney +, Hulu, and ESPN +) now reside under the same umbrella.
Disney has revealed a new corporate structure that divides its business into three groups, with the primary objective being the spread of streaming services.
However, All the updates on the streaming TV platforms on the pages dedicated to Amazon Prime Video, Netflix, Apple TV +, and Disney +.
Disney reorganizes to focus on streaming
Walt Disney has announced a reorganization of its activities to focus more on its streaming content service.
Disney +, took off thanks to the coronavirus epidemic and the consequent lockdowns.
“Mickey Mouse” has put its TV networks, its studios, and its direct consumer businesses into a single division called Media and Distribution.
Leading the division will be Kareem Daniel, longtime manager of the company.
The announcement yesterday evening gave wings to the Disney stock on Wall Street, where it went on to gain up to 3.6% in after-hours trading. (HANDLE).
Disney is reorganizing its business parts to focus more on streaming
Mickey leaves the cinema and focuses on the streaming platform. Disney announced a restructuring of the company and its media and entertainment divisions.
It focused on content distribution and ad sales on its Disney + channel.
Almost a year ago, the company launched its streaming service first in the United States and then in other countries.
Today, the company is accelerating its transition to streaming, especially following the pandemic that caused cinemas to close.
At the same time, it has registered over 100 million new subscribers to Disney + and entertainment offerings.
CEO Bob Chapek said the reorganization could reduce staff, but probably not at the same level as seen in the parks division.
Remember that last month it fired about 28,000 workers after it was no longer possible to reopen Disneyland in California.
Disney is part of several new streaming services like NBCUniversal’s Peacock and WarnerMedia’s HBO Max, challenging Netflix’s consumer attention and money.
Moreover, Disney Plus is considered to be one of the most successful so far.
It seems that focusing on streaming is just what investors wanted. The Mickey Mouse stock gains 4.22% in the premarket.
Investor and All the cuts made by Mickey mouse
The move came just days after activist investor Daniel Loeb of hedge fund Third Point urged Disney to forgo a dividend payment and double its streaming programming investments.
In an interview with CNBC, Bob Chapek said the company is planning to increase its investment in content. It is willing to cut the dividend to fund the strategy.
However, The restructuring comes as Disney grapples with the effects of the coronavirus pandemic on its entertainment empire.
Last month it was forced to lay off 28,000 people at its theme parks, while some remain closed and others work on a limited capacity.
Less than a year after Disney plus launched
Disney is reorganizing its business parts to focus even more on streaming, less than a year after its Disney Plus video streaming service launch.
In August, the company said that its service had reached more than 60 million subscribers.
And subscribers to its leading combination of streaming services, Disney Plus, ESPN Plus, and Hulu, are over 100 million.
Mickey’s company still has plans to launch another international streaming service called Star.
Some changes have been made in the group
In the statement, Disney boss Bob Chapek outlined some changes.
Disney’s publishing and consumer products, Kareem Daniel, will oversee the entire new media and entertainment group.
Eventually, all distribution, sales, and advertising of films and national television will fall under Daniel’s purview.
While Rebecca Campbell will continue to lead the charge on direct-to-consumer products, Peter Rice will show the general entertainment group.
However, the latter includes television studios and channels such as 20th Television, ABC Signature, Disney, Freeform, and FX channels.
“Managing content creation separate from distribution will allow us to be more effective and agile in making consumers.
And also, it wants more, delivered the way they prefer to consume it.”