News Disney announces strategic restructuring of media and entertainment divisions.

DCBaker

Well-Known Member
Original Poster
"On Monday, the company revealed that in order to further accelerate its direct-to-consumer strategy, it would be centralizing its media businesses into a single organization that will be responsible for content distribution, ad sales and Disney+.

Shares of the company jumped nearly 5% during after hours trading."

"As part of this reorganization, Disney has promoted Kareem Daniel, the former president of games and publishing within Disney’s consumer products division. He will now oversee the new media and entertainment distribution group.

He’ll be in charge of making sure streaming becomes profitable, as the company continues to invest heavily in its various streaming products. Daniels will hold the reins to all of the company’s streaming services and domestic television networks, including all content distribution, sales and advertising."

Reorganizing Disney’s media business

"Alan Horn and Alan Bergman will remain in charge of the company’s studios, Peter Rice will continue to head the company’s general entertainment group and James Pitaro will stay as head of the company’s sports content.

All will report directly to CEO Bob Chapek. The company’s parks, experiences and products segment will remain under the leadership of Josh D’Amaro and Rebecca Campbell will remain on as the chairman of direct-to-consumer and international operations. Campbell will report directly to Chapek for all things related to international operations but will report to Daniel when it comes to Disney+, Hulu and ESPN+."

“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,” Chapek said in a statement announcing the reorganization. “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.”

"Under Horn and Bergman, the studios segment will focus on creating content for theatrical release, Disney+ and Hulu. Walt Disney Studios, Marvel Studios, Pixar Animation Studios, Walt Disney Animation Studios, Lucasfilm, 20th Century Studios and Searchlight Pictures all fall under their perview."

"This new structure is effective immediately. The company currently expects to transition its financial reporting to reflect these changes beginning in the first quarter of fiscal 2021.

Additionally, Disney announced that it will hold a virtual investor day on Dec. 10."

 

Sorcerer Mickey

Active Member
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Bet your company on streaming, consolidate D+ with a whole mess of other things, and hand the reins to the guy in charge of Disney's video game offerings (which are...?). Doesn't sound like a great idea but I'm not an exec.
 

Slpy3270

Well-Known Member
I'm seeing people saying that "Disney's just a streaming company now" and that all of its legacy assets, ESPN/ABC, theme parks and theatrical business, will be spun-off. That Disney is "giving up" on theatrical distribution.

This is stupid for four reasons:
a) ALL of Disney's distribution operations are being centralized, not just streaming.
b) The three divisions are being operated as content creators, not legacy assets.
c) Parks are pretty much as is, as expected.
d) This restructuring was in the cards way before Covid. Once Disney+ was a hit, another restructuring was inevitable.
 

EPCOT-O.G.

Well-Known Member
This news deflates me to no end. I very much have enjoyed the moviegoing experience my entire life. I have very vivid memories of seeing big movies on the big screen. As a busy father, it’s one of my few regular hobbies I’ve kept up with with other fathers in the same boat.

Disney’s walking away from a huge stream of revenue. I know, Wall Street likes Netflix-type growth more than brick and mortar returns on investment. But, what was the last streaming movie that really excited you? The stuff they’ve dropped on D+ kind of comes and goes without registering for the most part. No one is making $200-$300M budget tent poles (think, Avengers or MCU films) for streaming services. I’m worried we’re going to get slightly better budgeted Disney Channel films/ Disney Sunday Night at the Movies type productions rather than the great box office films we’ve come to expect.
 

Slpy3270

Well-Known Member
This news deflates me to no end. I very much have enjoyed the moviegoing experience my entire life. I have very vivid memories of seeing big movies on the big screen. As a busy father, it’s one of my few regular hobbies I’ve kept up with with other fathers in the same boat.

Disney’s walking away from a huge stream of revenue. I know, Wall Street likes Netflix-type growth more than brick and mortar returns on investment. But, what was the last streaming movie that really excited you? The stuff they’ve dropped on D+ kind of comes and goes without registering for the most part. No one is making $200-$300M budget tent poles (think, Avengers or MCU films) for streaming services. I’m worried we’re going to get slightly better budgeted Disney Channel films/ Disney Sunday Night at the Movies type productions rather than the great box office films we’ve come to expect.
Great box office films like the Transformers series? The Fast and the Furious? That kind of ****?

Once movie theaters started to rely on those films for revenue over avant-garde independent cinema, the writing was on the wall.
 

EPCOT-O.G.

Well-Known Member
Great box office films like the Transformers series? The Fast and the Furious? That kind of ****?
No, the stuff that Disney has made that cost upwards of $200M (major MCU films, most of their animation tentpoles) that they will no longer make as they have, because they won’t get the same return on their investment.
 

Slpy3270

Well-Known Member
No, the stuff that Disney has made that cost upwards of $200M (major MCU films, most of their animation tentpoles) that they will no longer make as they have, because they won’t get the same return on their investment.
That same strategy also gave us John Carter, Cars 2, The Lone Ranger and The Good Dinosaur. It's also the reason DreamWorks Animation isn't an independent studio anymore

Plus, the entire media industry is going down this route, whether you like it or not. The only way I can see it halting is if Netflix gets into serious trouble.
 
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JoeCamel

Well-Known Member
This news deflates me to no end. I very much have enjoyed the moviegoing experience my entire life. I have very vivid memories of seeing big movies on the big screen. As a busy father, it’s one of my few regular hobbies I’ve kept up with with other fathers in the same boat.

Disney’s walking away from a huge stream of revenue. I know, Wall Street likes Netflix-type growth more than brick and mortar returns on investment. But, what was the last streaming movie that really excited you? The stuff they’ve dropped on D+ kind of comes and goes without registering for the most part. No one is making $200-$300M budget tent poles (think, Avengers or MCU films) for streaming services. I’m worried we’re going to get slightly better budgeted Disney Channel films/ Disney Sunday Night at the Movies type productions rather than the great box office films we’ve come to expect.
The days of the stars getting 20M+ are gone I think. Hollywood will implode if the stupid movie money dries up.

Oh, who ever will buy KIm and Kayleigh"s garbage and where will they shop?
 

castlecake2.0

Well-Known Member
I don’t see this as giving up on theme parks, that segment went through major organizational changes a couple years ago, now it’s the media side of the company’s turn. The company more or less is/was always a movie studio that uses its content in various ways like tv channels, stores, parks, cruises, merchandise etc. Not a huge change really.
 

_caleb

Well-Known Member
I think this is good news, and I agree this was in the works WAY before COVID. Streaming/direct to consumer is the way forward for ALL Disney content (hopefully including games someday). I'm hopeful this will lead to a broader variety of (though probably lower-budget) content aimed at a broader variety of audiences (The Mandalorian) rather than betting big on blockbusters with universal appeal (Tomorrowland, Lone Ranger, Jungle Cruise).

This could really help prevent the further shoehorning of IP into the parks by freeing up content divisions to create specialized content in support of rides and attractions. A Big Thunder Mountain Railroad miniseries would be awesome and might help Disney resist the temptation to do a crappy overlay of whatever big-budget summer popcorn movie raked in the big bucks five years ago.
 

Slpy3270

Well-Known Member
I think this is good news, and I agree this was in the works WAY before COVID. Streaming/direct to consumer is the way forward for ALL Disney content (hopefully including games someday). I'm hopeful this will lead to a broader variety of (though probably lower-budget) content aimed at a broader variety of audiences (The Mandalorian) rather than betting big on blockbusters with universal appeal (Tomorrowland, Lone Ranger, Jungle Cruise).

This could really help prevent the further shoehorning of IP into the parks by freeing up content divisions to create specialized content in support of rides and attractions. A Big Thunder Mountain Railroad miniseries would be awesome and might help Disney resist the temptation to do a crappy overlay of whatever big-budget summer popcorn movie raked in the big bucks five years ago.

They tried their hand on that and it didn't work. There's a reason Disney Infinity doesn't exist anymore.
 

_caleb

Well-Known Member
This news deflates me to no end. I very much have enjoyed the moviegoing experience my entire life. I have very vivid memories of seeing big movies on the big screen. As a busy father, it’s one of my few regular hobbies I’ve kept up with with other fathers in the same boat.

Disney’s walking away from a huge stream of revenue. I know, Wall Street likes Netflix-type growth more than brick and mortar returns on investment. But, what was the last streaming movie that really excited you? The stuff they’ve dropped on D+ kind of comes and goes without registering for the most part. No one is making $200-$300M budget tent poles (think, Avengers or MCU films) for streaming services. I’m worried we’re going to get slightly better budgeted Disney Channel films/ Disney Sunday Night at the Movies type productions rather than the great box office films we’ve come to expect.
I'm really sorry for you all who are fans of the big screen. But movie theaters have been struggling for a long time. Disney is certainly NOT "walking away from a huge stream of revenue," they're cutting out the middle man!

I think the content you see on Disney+ (and will see much, much more of in the future) is the result of Disney finally realizing that the world is not one huge audience, but a collection of lots of smaller audiences with more niche interests.

The selection on D+ may not be your cup of tea, but is increasingly tailored to the tastes of specific audiences. Don't worry, they'll eventually get around to making more content targeted at Busy Dads. It's just that in most households, we're the holdouts still watching cable! The big budget blockbusters will be a thing of the past, but the shows are going to be much better!
 

oceanbreeze77

Well-Known Member
I think this is a great example of disney taking the lead and adapting to these times. Almost everyone loves the movie going experience, but its just not a feasible money maker right now, and won't be for at least a year maybe 2. Disney can't just sit around and wait and they also can't make movie theater blockbuster hits when no one will come see them. This is a good strategy for now. I'm assuming we will see Black Widow hit Disney+ soon.
 

Lilofan

Well-Known Member
It's amazing how desperate some folks are to push the narrative that Disney will sell / spin off its parks. Even with the current climate, Disney isn't about to give up on a cash cow that produces boatloads of cash and will again soon.
Iger wanted to in beginning of his CEO reign so nothing is off the table.
 

_caleb

Well-Known Member
They tried their hand on that and it didn't work. There's a reason Disney Infinity doesn't exist anymore.
I know! But I'm not sure the reason was what Disney seemed to think. The toys were the problem, not the games! If Disney Infinity had been free-to-play with cosmetic add-ons (a la Fortnite), I think things would have turned out very differently.

With this restructuring, Kareem Daniel (the former president of consumer products, games and publishing) will be leading the new media and entertainment distribution group. So I'm hoping he'll see the benefits of direct-to-consumer to games, too!
 
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Slpy3270

Well-Known Member
It's amazing how desperate some folks are to push the narrative that Disney will sell / spin off its parks. Even with the current climate, Disney isn't about to give up on a cash cow that produces boatloads of cash and will again soon.
Same with ESPN/ABC, which are still generating more revenue via re-transmission fees and advertising than streaming.

Of course, they can do away with the 50% stake in A&E since they majority-own Nat Geo now.
 
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