Walt Disney Company has decided to do a strategic reorganization of its media and entertainment business. The company is going to focus on developing and producing original content for its streaming services, as well as legacy platforms.
Distribution and commercialization activities will be centralized into a single, global Media and Entertainment Distribution organization. That organization will be responsible for all monetization of content – both distribution and sales – and will oversee the company’s streaming services. The leaders of each part of this reorganization will report to Bob Chapek, Chief Executive Officer. Here is a partial quote from him that was in the news release:
“Our creative teams will concentrate on what they do best – making world-class, franchise-based content – while our newly centralized global distribution team will focus on delivering and monetizing that content in the most optimal way across all platforms, including Disney+, Hulu, ESPN+ and the coming Star international streaming service.”
CNBC reported that shares of the company jumped more than 5% during after-hours trading following the announcement.
At the end of September, Disney decided to lay off 28,000 employees across its parks, experiences, and consumer products segment. According to CNBC, the company blamed this decision on prolonged closures and capacity limits at open parks.