Disney announces a major shakeup in its organization, particularly forming a centralized department for its entertainment division, with emphasis on its streaming platforms.
Entertainment giant Disney had said that it plans to make a shakeup in its organization, mainly to pour more focus on its streaming platforms. With a revamped structure, the company will further push its digital media effort.
Reorganization of the Entertainment Division
In a press release, the Walt Disney Company announced that it plans to reorganize its media and entertainment division. It builds on the House of Mouse’s attempts to accelerate its direct-to-consumer strategy.
Disney has announced a major reorganization of its media and entertainment business to "further accelerate" its streaming strategy https://t.co/zcpFGHtZcD
— CNN Business (@CNNBusiness) October 12, 2020
With the overhaul, the studio giant said it can assign its best creative engines to focus on improving their streaming platforms through original content. Moreover, it also centralized to one department the distribution and commercialization of those contents. The newly formed Media and Entertainment Distribution will oversee the operations of Disney’s streaming services and monetize those contents.
New Media Division
Particularly in that reorganization, 14-year Disney veteran Kareem Daniel will now chair the Media and Entertainment Distribution. He previously led the consumer products, games, and publishing of Disney. Moreover, Daniel’s department will include Disney’s streaming services.
Meanwhile, Disney splits its content creation into three distinct groups: Studios, General Entertainment, and Sports. Furthermore, Daniel, Media and Entertainment Distribution head, will still oversee these three groups. Meanwhile, the previous CEO of Disney, Bob Iger, will still remain as an Executive Chairman, in which he will oversee Disney’s creative direction.
Disney in a Digital Age
“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,” Disney’s chief exec Bob Chapek stated.
The Verge reported that Disney had long been planning the shakeup in its organization. But the pandemic only accelerated the effort. Especially now that digital media now remains profitable as other forms of leisure. Particularly, parks, Disney’s expertise, remain closed or largely avoided. That is also on top of the shutdown of cinemas, where studio giants like Disney can’t really make money from at the moment.