Disney Undergoes Major Reorganization To Prioritize Streaming

It’s final. Disney is going full throttle with streaming.

On Monday, the company announced a significant reorganization of its media and entertainment business to put primary focus on its streaming strategy.

Under the new structure, Disney is setting up a new Media and Entertainment Distribution group to take charge of both the dissemination and ad sales of all its content. The group will also manage the company’s streaming services like 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,” Disney CEO Bob Chapek said in a statement. “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.”

Even though the company’s streaming platform isn’t a year old yet, it has already amassed more than 60 million subscribers. Disney predicts that by 2024, it will have reached 90 million globally.

Chapek has tapped former president of Disney’s consumer products, games, and publishing division Kareem Daniel to head the newly created group.

In his statement, Chapek described Daniel as “an exceptionally talented, innovative, and forward-looking leader, with a strong track record for developing and implementing successful global content distribution and commercialization strategies.” Not only that but Chapek is confident that Daniel’s “wealth of experience” will enable him to create a “distribution powerhouse that will serve all of Disney’s media and entertainment businesses.”

Production of new content for the new group will primarily come from three divisions: Studios, General Entertainment, and Sports. Alan Bergman and Alan Horn will continue to manage Studios content which includes material from Marvel Studios, Pixar Animation, Walt Disney Studios, Lucasfilm, 20th Century Studios, Searchlight Pictures, and Disney Animation.

Peter Rice will continue to oversee General Entertainment which will manage material from the company’s 20th Television, ABC Signature, and Touchstone Television productions as well as new divisions Freeform, FX, National Geographic, and Disney channels.

Last but not least, James Pitaro will continue to head Sports Content. This division will focus on sports productions and ESPN as wells as original and non-scripted sports-related material for cable channels, ESPN+ and ABC, and live events.

The announcement follows a major reorganization in the company’s release schedule to address the collapsing theatrical release business, production issues, and, of course, the success of its streamer.

The new structure is effective immediately.