Disney to Restructure Business to Focus on Streaming

Published October 13th, 2020 - 12:30 GMT
Disney to Restructure Business to Focus on Streaming
A new Media and Entertainment Distribution division, led by Kareem Daniel, will consolidate responsibility for the company's global distribution and ad sales and will also oversee its streaming services. (Shutterstock)
Highlights
The "primary focus" of the company's creative efforts would be making content for its streaming services, which include Disney+, Hulu and ESPN+, as well as legacy platforms, Disney said in a statement.
US entertainment giant Disney is restructuring its business to place more emphasis on the booming streaming market, the company announced Monday after stock markets closed.

The "primary focus" of the company's creative efforts would be making content for its streaming services, which include Disney+, Hulu and ESPN+, as well as legacy platforms, Disney said in a statement.

Shares rose 5 percent in after-hours trading on the news, according to Deutsche press agency (dpa).

A new Media and Entertainment Distribution division, led by Kareem Daniel, will consolidate responsibility for the company's global distribution and ad sales and will also oversee its streaming services.

Daniel is a 14-year veteran of the company, most recently responsible for consumer products.

"Managing content creation distinct from distribution will allow us to be more effective and nimble in making the content consumers want most," chief executive Bob Chapek said.

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 as some remain closed and others operate at limited capacity.

In an interview on broadcaster CNBC on Monday, Chapek said he would not characterize the restructure as a "response to Covid."

"I would say Covid accelerated the rate at which we made this transition, but this transition was going to happen anyway," he said.
 


Publishing Rights Reserved to Bahrain News Agency © 2003 - 2021

You may also like