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[ManaByte]

Disney Sets Major Reorganization Around Disney+

Steaming service operations moved under combined Media and Entertainment Distribution group

www.thewrap.com

Disney CEO Bob Chapek announced a major restructuring on Monday, which will put its streaming service Disney+ in the middle of the company’s operations.

The new structure will be geared towards a “focus on developing and producing original content for the Company’s streaming services,” Disney said in announcing its reorganization on Monday. Disney is streamlining its content development into three groups — studios, general entertainment and sports — while separating it from distribution. The three groups will be headed by their current leaders Alan Horn and Alan Bergman, Peter Rice, and James Pitaro.

Additionally, Disney is combining its ad sales and distribution teams into one division, the Media and Entertainment Distribution group, which will be headed by Kareem Daniel, formerly President, Consumer Products, Games and Publishing. All five leaders will report directly to Chapek. Disney Parks, Experiences and Products will continue to operate under its existing structure, led by Josh D’Amaro. Rebecca Campbell will serve as Chairman, International Operations and Direct-to-Consumer.

The new structure is effective immediately, and Disney expects to transition to financial reporting under this structure in the first quarter of fiscal 2021.

Under Horn and Bergman will be the main film studios including Walt Disney Studios, Animation Studios, Pixar, Marvel Studios, LucasFilm, 20th Century Studios and Searchlight Pictures. Horn and Bergman’s group will also be charged with creating content for Disney+ and other streaming services like Hulu, in addition to theatrical releases.

Rice will lead the General Entertainment Group, which will house the TV studios including 20th Television, ABC Signature, Touchstone Television, and cable networks including Disney Channels, Freeform, FX and National Geographic. Pitaro will serve as chairman of ESPN and sports content, where he adds oversight of sports programming on ESPN+ and ABC.

“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,” Mr. Chapek said. “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. Our creative teams will concentrate on what they do best–making world-class, franchise-based content–while our newly centralized global distribution team will focus on delivering and monetizing that content in the most optimal way across all platforms, including Disney+, Hulu, ESPN+ and the coming Star international streaming service.”

Disney will hold a virtual investor day on Dec. 10.

Translation: Theaters are now an afterthought going into 2021.

 

[nush]

That's an understandable decision.

 

[#Phonepunk#]

seems like a good move. kind of lucky they got this more business minded guy to run things just before this all blew up.

 

[sol_bad]

I mean, this should have been set up before Disney+ was released. Very weird.
Hopefully they don't mess with Marvel Studios, Pixar, Disney Animation or Searchlight. Disney's live action releases could do with a good kick up the arse.
Finally, where are the new 20th Century Film announcements, am I missing something?

 

[Punished Miku]

What does content distribution separated from development mean?

 

[ManaByte]

What does content distribution separated from development mean?

Means what they make now will no longer be made for a specific type of distribution (like theaters) now. Meaning they'll produce the content and then distribution would determine what's the best place for it.

The side effect of this is contracts won't have guaranteed theatrical releases baked into them anymore.

 

[sol_bad]

Makes sense, they can send piece of shit films like Artemis Fowel straight to Disney+ if they expect the box office will be bad.

 

[TaySan]

Im gonna be so bummed if they abandon UHD Blu Ray.

 

[TheMan]

Pretty big pivot. I wouldn't be surprised if other major studios followed suit

AMC sweatin harder

 

[StreetsofBeige]

Smart move.

Disney park revenue won't be the same any time soon. Theaters are closed in lots of countries. So might as well try to get money directly the subscription way.

 

[sinnergy]

Like I told neo gaf , streaming is the future for all content, convenience is king . Gaming /audio / movies .

 

[MrMephistoX]

Smart move.

Disney park revenue won't be the same any time soon. Theaters are closed in lots of countries. So might as well try to get money directly the subscription way.

And their biggest cash cow Disneyland is still closed arbitrarily but our blessed governor Newsom. They’ve reopened 7 of their parks and haven’t had a single outbreak due to mandatory masks and ride sanitization: 28000 people needlessly lost their jobs.

Theaters I get them parks are mostly outdoors.

 

[sol_bad]

Like I told neo gaf , streaming is the future for all content, convenience is king . Gaming /audio / movies .

This has nothing to do with the future. It's essentially Disney deciding whether a movie releases theatrically or digitally. You still won't get their top tier films straight to streaming.

Disney have already been doing this with Onward, Artemis Fowel and now Soul. They are just .... officialising this process really.

Disney won't want to miss out on 400+ potential box office revenues. That's money you can't get via streaming services.

 

[ManaByte]

This has nothing to do with the future. It's essentially Disney deciding whether a movie releases theatrically or digitally. You still won't get their top tier films straight to streaming.

Disney have already been doing this with Onward, Artemis Fowel and now Soul. They are just .... officialising this process really.

Disney won't want to miss out on 400+ potential box office revenues. That's money you can't get via streaming services.

How are they going to release in theaters if there won't be theaters in 2021?

AMC Theatres Says Cash Resources to Be “Largely Depleted” by End of 2020 or Early 2021

AMC Theatres said that its "existing cash resources" will be "largely depleted by the end of 2020 or early 2021." The movie theater giant added that "the required amounts of additional liquidity are expected to be material," and it is looking to address the issue in various ways.

www.hollywoodreporter.com

 

[#Phonepunk#]

well didn't they knock down the law that studios couldn't own theaters? maybe they will wait a year and buy up a bunch of theaters and open their own chain.

 

[Super Mario]

You can sell it with other companies, and they take a cut. Or you can keep it all yourselves, and get people hooked on a continuous revenue plan. Which would you pick?

 

[sol_bad]

You can sell it with other companies, and they take a cut. Or you can keep it all yourselves, and get people hooked on a continuous revenue plan. Which would you pick?

People are already hooked on Disney+, 60 million subs. Theatrical is even more money for them.

How are they going to release in theaters if there won't be theaters in 2021?

AMC Theatres Says Cash Resources to Be “Largely Depleted” by End of 2020 or Early 2021

AMC Theatres said that its "existing cash resources" will be "largely depleted by the end of 2020 or early 2021." The movie theater giant added that "the required amounts of additional liquidity are expected to be material," and it is looking to address the issue in various ways.

www.hollywoodreporter.com

Life finds a way

 

[dorkimoe]

Disney needs to quit being kids only. And release some actual good original content if they wanna compete. You can’t live off your back catalogue forever

 

[Newly Vacant]

Disney is in for a rocky few years. They’ve already stated that Disney+ won’t be profitable for years. Without the parks and theater revenue, I think they’re going to be cutting everything they can.

 

[GeorgPrime]

They have a lot of work to do to get Disney+ more valuable for the customers.

 

[kunonabi]

I dont know I still dont see streaming revenue being enough to fund all this super expensive content.

 

[ManaByte]

Disney is in for a rocky few years. They’ve already stated that Disney+ won’t be profitable for years. Without the parks and theater revenue, I think they’re going to be cutting everything they can.

They have a lot of work to do to get Disney+ more valuable for the customers.

Disney+ hit 60M paid subs faster than Netflix did.

 

[Newly Vacant]

Disney+ hit 60M paid subs faster than Netflix did.

That’s good, but Disney still said it’d be years before it was profitable.

 

[MaestroMike]

Disney needs to quit being kids only. And release some actual good original content if they wanna compete. You can’t live off your back catalogue forever

Disagree with disney needing to quite being kids only. They're the king of family friendly content like nintendo is with video games and theyve been able to plant their seeds in children for generations forming lifelong bonds that will be passed onto the next generation. Family friendly content should still be their main focus. If you want more deep, adult stuff stick to netflix and hbo. Netflix/hbo and disney can coexist and not really compete with each other the same way xbox/sony and nintendo do. Netflix/hbo/xbox/playstation for the parents while nintendo/disney is for the kids. Not sure why hulu is on the switch and disney+ isn't. Disney needs to get that app on there pronto.

 

[GeorgPrime]

Disney+ hit 60M paid subs faster than Netflix did.

And people still dont think its worth it aside from The Mandalorian. Many friends i have cabceled subs after it

 

[ksdixon]

If Disney are going digital, it bodes ill for Sony's blu ray format.

Sony should buy and merge CrunchyRoll and Funimation together to have a hold on the anime market.

 

[kunonabi]

If Disney are going digital, it bodes ill for Sony's blu ray format.

Sony should buy and merge CrunchyRoll and Funimation together to have a hold on the anime market.

No thanks, Sony and Funimation having that much control of it would be a disaster.

 

[Stitch]

Disney+ hit 60M paid subs faster than Netflix did.

It was heavily discounted in lots of countrys. I got it much cheaper for basically "pre-ordering" it.

I'm barely using it. I think not many will resub if Disney can't produce more content. And I don't mean cheap stupid Documentarys with Jeff Goldblum about Sneakers or Beyonce shit.

 

[MilkyJoe]

Im gonna be so bummed if they abandon UHD Blu Ray.

Why? You got a fruity wager?

 

[Kayoba]

Don't care about theaters much since I don't go there, but they better not stop producing UHD discs.

Physical media > Streaming