10th April 2018
Written on 10th April 2018
The Walt Disney Company announces Strategic Re-organisation
The Walt Disney Company announced a strategic re-organisation of its businesses into four segments: the newly-formed Direct-to-Consumer and International; the combined Parks, Experiences and Consumer Products; Media Networks; and Studio Entertainment. The re-organisation is effective immediately.
DIRECT-TO-CONSUMER AND INTERNATIONAL
The newly created Direct-to-Consumer and International segment will serve as a global, multi-platform media, technology and distribution organization for world-class content created by Disney’s Studio Entertainment and Media Networks groups. The new segment will be comprised of Disney’s international media businesses and the Company’s direct-to-consumer businesses globally–including the upcoming Disney-branded direct-to-consumer streaming service, the Company’s ownership stake in Hulu, and its soon-to-be-launched ESPN+ streaming service, programmed in partnership with ESPN.
The new Direct-to-Consumer and International business segment will also be responsible for the distribution of all direct-to-consumer services globally.
PARKS, EXPERIENCES AND CONSUMER PRODUCTS
The new Parks, Experiences and Consumer Products segment will become the hub where Disney’s stories, characters and franchises come to life. Disney’s worldwide consumer products business will be merged with Walt Disney Parks and Resorts. Disney’s global consumer products operations include the world’s leading licensing business across toys, apparel, home goods, and digital games and apps; the world’s largest children’s publisher; Disney store locations around the world; and the shop Disney e-commerce platform. By uniting Disney’s consumer products business and Disney Parks’ robust retail and e-commerce operations, the Company will be able to share resources and best practices to provide consumers with incomparable branded products and retail experiences that only Disney can create.
The Media Networks segment will remain virtually the same, with the exception of the international Disney Channel operations that are moving to the Direct-to-Consumer and International business segment along with management of global advertising sales/technology.
The Walt Disney Studios, and remains virtually the same, with the exception of the management of program sales moving to the Direct-to-Consumer and International business segment. The Studio Entertainment segment includes Walt Disney Animation Studios, Disney Live Action, Pixar Animation Studios, Marvel Studios and Lucasfilm, as well as Disney Theatrical Group and Disney Music Group.
The Company expects to transition to financial reporting under the new structure by the beginning of fiscal 2019.