Disney Goes For Broke On Streaming
Disney is undertaking a massive restructure to focus on its streaming services following the success of Disney+.
With more than 100 million subscribers across its streaming platforms – 60 million of which come from Disney+ – as well as the closure of parks and cinemas due to the pandemic, the media giant will turn its creative teams to developing and producing direct-to-consumer content for its streaming services.
Distribution and commercialisation will also be split off and centralised into a new Media and Entertainment Distribution group. According to Disney CEO Bob Chapek, the move is part of Disney’s strategy to rapidly accelerate growth in its direct-to-consumer offerings.
“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,” he said.
Disney+ has already seen major film releases that would otherwise have gone to cinemas, such as its remake of Mulan. The new structure will come into effect immediately, and met with approval from Wall Street, with Disney shares rising six per cent in after-hours trading following the announcement.