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Old 10-13-2020, 12:19 PM   #1
zafiro
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Default The Walt Disney Company reorg

Yesterday, DIS announced a major re-org:

"Disney said Monday that it is reorganizing its business units to focus even more on streaming. The company said in August that its Disney Plus service has more than 60 million subscribers, and subscribers to its main combination of streaming services Disney Plus, ESPN Plus and Hulu top 100 million. It still plans to launch another international streaming service called Star."

The intent is to create three content segments including sports, general entertainment, studios; and they'll create a new distribution group to centralize content sales and streaming operations.

The market likes this; many are saying this is DIS opportunity to get rid of ESPN since it has been a drag on the company and the NBA finals were a bust.

And, yes, Chapek remains in charge of it all.
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Old 10-13-2020, 12:49 PM   #2
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I thought a lot about this after seeing an article yesterday. My nave, and perhaps Pollyannaish, hope is that this might increase the importance of the Disney brand as a whole. While it has been general knowledge, people watching ABC, ESPN, etc. did not inherently connect the network they were watching with the parent company. This meant that the networks had little impact on the Disney brand, and the Disney brand had little impact on the networks.

Should this reorganization change that connection in a substantial way, it could actually make the parks more important, and not less. WDW and DL are the most tangible reflections of the Disney brand in the country. If the brand itself becomes more central to this structural reorganization, the importance of the parks could follow.

It's absolutely just one of many paths that could unfold, but it is at least a foreseeable possibility on which I can hang my hopes!
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Old 10-13-2020, 07:53 PM   #3
Brian5581
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Similar strategy to what Comcast (NBC, Universal, Peacock) and AT&T (Warner Brothers, HBO, HBO Max) are doing with their entertainment options. Makes sense to attempt to optimize each asset as much as possible.
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