The move comes just under a year after the launch of Disney Plus, which has since surpassed the 60 million subscriber mark. That makes more sense because those audiences are typically geared towards children (or Disney fans) and not based entirely on their box office growth to keep fans intrigued.
"It's about streamlining the decision making, looking at it from a 50,000-foot view", chief executive officer Bob Chapek said in an interview, "as opposed to a movie that's made in the studio, therefore it goes to the studio, or a television show that's made at ABC studios, therefore goes on ABC".
Once Upon A Snowman ©Disney Coming Soon to Disney+.
In light of the tremendous success achieved to date in the Company's direct-to-consumer business and to further accelerate its DTC strategy, The Walt Disney Company (NYSE: DIS) today announced a strategic reorganization of its media and entertainment businesses.
The new distribution group would headed by Kareem Daniel, the former president of games and publishing in the company's consumer products group. That could mean that the next Star Wars or Marvel Cinematic Universe release could hit Disney+ exclusively or have a hybrid theatrical/premium Disney+ strategy. With so many companies under one roof, Disney would typically be raking in billions of dollars, but the COVID-19 pandemic has taken a huge toll as theaters, theme-parks, live sports, and other aspects of the Disney company have been forced to shut down. With theaters closed in the United States, Disney premiered its "Mulan" blockbuster on Disney+ in September for $30.
Alan Horn and Alan Bergman will remain in charge of Disney's studios, but will increase their focus on creating content for Disney+ and Hulu, as well as for theatrical release. Walt Disney Studios, Marvel Studios, Pixar Animation Studios, Walt Disney Animation Studios, Lucasfilm, 20th Century Studios and Searchlight Pictures fall under their remit.
Peter Rice will serve as the Chairman of General Entertainment Content. That involves the creation of the new Media and Entertainment Distribution group, which will oversee all content monetization and streaming operations. James Pitaro will serve as chairman, ESPN and sports content, overseeing live sports programming and non-scripted sports related content for ESPN+ as well as ABC and the cable properties. Rebecca Campbell will still head up Disney's direct-to-consumer operations but now report to Daniel.
Campbell will report to Bob Chapek directly for anything related to global operations, but she will now report to Kareem Daniel for all matters related to Disney+, Hulu, and ESPN+.
Separating distribution from content production will allow Disney to be more nimble when deciding how and where to release films and series, Disney Chief Executive Bob Chapek said in an interview.
This new structure is effective immediately.
The company also said it would host a virtual investor day on December 10.
Whereas the pandemic has wounded a few of Disney's key income streams, together with theatrical grosses, theme parks, and TV advert gross sales, the corporate discovered runaway success with Disney+. We're on the lookout for more Disney news, so be sure to come back for more updates. The success of the National Basketball Association season, in which the Los Angeles Lakers won the championship series Sunday, is "proof positive that we know what we're doing", he said.