Disney relies on Streaming Focus, Kareem Daniel's Unifying Media Unit.

2020 was a wild and unpredictable year. With lockdown orders and COVID-19 precautions keeping movie audiences at home, the entertainment industry's transition to streaming has accelerated.

The Walt Disney Company is reorienting its Audio and Video media efforts on developing and producing original content for its streaming services, such as Disney +, as well as legacy platforms. Distribution and marketing will be streamlined into a single global “Media and Entertainment Distribution” unit led by Disney's 14-year veteran Kareem Daniel, former President of Consumer Products, Games and Publishing.

Daniel previously held the position of President of Imagineering Operations, Product Creation, Publishing & Games, where he directed major projects such as the creation of Star Wars: Galaxy's Edge at Disney World and Disneyland. He also served as SVP of Strategy & Business Development for Consumer Products & Interactive Media and VP of Distribution Strategy for Walt Disney Studios. The 46-year-old Chicago native enjoyed a meteoric rise at the company after stepping foot in the front door as an intern.

The announcement did not include the mention of further layoffs.

"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," said CEO Bob Chapek. “Managing content creation separate from distribution will allow us to be more effective and agile in making consumers want more, delivered the way they prefer to consume it. Our creative teams will focus on what they do best - making world-class franchise-based content - while our newly centralized global distribution team will focus on distributing and monetizing that content in the most optimal way across all platforms. , including Disney +, Hulu, ESPN + and the upcoming international streaming service Star “.

The co. so far this year, it has pulled three major movie releases from theaters in favor of Disney + openings. Hamilton kicked things off as a title available to subscribers at no extra cost, while the great live-action Mulan came priced at $ 30. The viewer and virtual box office numbers for the Chinese epic have yet to be released, but the upcoming Pixar animation is original Soul will arrive on December 25 at no additional cost to Disney + subscribers.

Disney's MED will handle all content monetization and oversee the operations of the company's streaming service, as well as hold sole responsibility for profit and loss for its media and entertainment businesses. Content creation will be split into "Studios", "General Entertainment" and "Sports," all directed by current Disney executives. An investor day will be held on December 10 to explain further details of the reorg and the company's plans.

Chapek told CNBC in an interview Monday night that the restructuring is not a reaction to the pandemic, but that global crises "have accelerated the pace at which we have made this transition."

The MED Studios group - which includes Walt Disney Animation, Pixar Animation, Walt Disney Studios, Marvel Studios, Lucasfilm, 20th Century Studios and Searchlight Pictures - will be overseen by Alan Horn and Alan Bergman as Presidents, Studios Content, and charged with creating films and episodic rate for shows, Disney + and the company's other streamers. Horn and Bergman report directly to Chapek.

MED General Entertainment will focus on episodic and long-form content for streaming platforms, cable and broadcast networks (including Disney Channel, FX, 20th Television and others). The group will be led by president Peter Rice, a longtime Fox executive who folded into Disney's corporate structure following the acquisition in 2018.

Rebecca Campbell, who succeeded Kevin Mayer as Head of Direct to Consumer & International and was previously President - EMEA for Walt Disney Co., will now be Chairman of International Operations & Direct to Consumer, reporting to Chapek on global issues and to Daniel on operations. direct to the consumer for streaming.

MED Sports will be led by President Jimmy Pitaro. Josh D'Amaro remains president of Disney Parks, Experiences and Products, reporting to Chapek. Executive President Bob Iger will continue to oversee the creative endeavors.

In addition to the huge box office success of the films, Disney's diverse media and entertainment interests have provided multiple points of vulnerability to the economic impact of the pandemic. Reductions and closures for theme parks, vacation travel, live sports, and TV commercials have left Disney + as a rare bright spot in its first few months of life. But, even though subscriber forecasts were largely surpassed (hitting its five-year target of $ 60,5 million in August), the company told investors ahead of the launch that it could be years before the new streamer makes a profit.

Following the announcement of pro-streaming streaming optimization on Monday, Disney shares were up 5% in early trading, peaking above broad flats and market dips. The company's stock was up more than $ 131 on Tuesday, marking its highest point in nearly a month. Disney started 2020 with shares at $ 145. Analysts were excited about the pivot, predicting an avalanche of content directed to Disney +, Hulu and Star, including features originally intended for theaters.

[Source: Deadline]