New Structure Designed to Further Accelerate
the Company’s Direct-to-Consumer Strategy, in light of the Rapid
Success of Disney+
Company’s Creative Engines Will Focus on
Producing Content for DTC as well as Legacy Platforms, while Newly
Centralized Distribution Group Will Oversee Commercialization and
Distribution of All Content Globally
Alan F. Horn and Alan Bergman, Peter Rice,
and James Pitaro Will Lead the Company’s Three Content Creation
Groups
Kareem Daniel Named Chairman, Media and
Entertainment Distribution, Which Will Include the Company’s
Streaming Services, Led by Rebecca Campbell
Disney Sets December 10 as Date for Virtual
Investor Day
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.
Under the new structure, Disney’s world-class creative engines will
focus on developing and producing original content for the
Company’s streaming services, as well as for legacy platforms,
while distribution and commercialization activities will be
centralized into a single, global Media and Entertainment
Distribution organization. The new Media and Entertainment
Distribution group will be responsible for all monetization of
content—both distribution and ad sales—and will oversee operations
of the Company’s streaming services. It will also have sole P&L
accountability for Disney’s media and entertainment businesses.
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Kareem Daniel, Chairman, Media and
Entertainment Distribution (Photo: Business Wire)
The creation of content will be managed in three distinct
groups—Studios, General Entertainment, and Sports—headed by current
leaders Alan F. Horn and Alan Bergman, Peter Rice, and James
Pitaro. The Media and Entertainment Distribution group will be
headed by Kareem Daniel, formerly President, Consumer Products,
Games and Publishing. All five leaders will report directly to Bob
Chapek, Chief Executive Officer, The Walt Disney Company. Disney
Parks, Experiences and Products will continue to operate under its
existing structure, led by Josh D’Amaro, Chairman, Disney Parks,
Experiences and Products, who continues to report to Mr. Chapek.
Rebecca Campbell will serve as Chairman, International Operations
and Direct-to-Consumer. Bob Iger, in his role as Executive
Chairman, will continue to direct the Company’s creative
endeavors.
“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.”
Under the new structure, the Company’s three content groups will
be responsible and accountable for producing and delivering content
for theatrical, linear and streaming, with the primary focus being
the Company’s streaming services:
- STUDIOS: Messrs. Horn and Bergman will serve as Chairmen,
Studios Content, which will focus on creating branded theatrical
and episodic content based on the Company’s powerhouse franchises
for theatrical exhibition, Disney+ and the Company’s other
streaming services. The group will include the content engines of
The Walt Disney Studios, including Disney live action and Walt
Disney Animation Studios, Pixar Animation Studios, Marvel Studios,
Lucasfilm, 20th Century Studios and Searchlight Pictures.
- GENERAL ENTERTAINMENT: Mr. Rice will serve as Chairman, General
Entertainment Content, which will focus on creating general
entertainment episodic and original long-form content for the
Company’s streaming platforms and its cable and broadcast networks.
The group will include the content engines of 20th Television, ABC
Signature and Touchstone Television; ABC News; Disney Channels;
Freeform; FX; and National Geographic.
- SPORTS: Mr. Pitaro will serve as Chairman, ESPN and Sports
Content, which will focus on ESPN’s live sports programming, as
well as sports news and original and non-scripted sports-related
content, for the cable channels, ESPN+, and ABC.
The Media and Entertainment Distribution group, led by Mr.
Daniel, will be responsible for the P&L management and all
distribution, operations, sales, advertising, data and technology
functions worldwide for all of the Company’s content engines, and
it will also manage operations of the Company’s streaming services
and domestic television networks. The group will work in close
collaboration with the content creation teams on programming and
marketing.
A 14-year Disney veteran, Mr. Daniel has held leadership
positions across a variety of businesses, including consumer
products, games and interactive experiences, publishing, studio
distribution, and Walt Disney Imagineering. He has a deep
understanding of the Company’s brands and franchises and vast
experience extending original IP into experiential storytelling
across business segments. Prior to leading Consumer Products, Games
and Publishing, Mr. Daniel served as President of Walt Disney
Imagineering Operations, Product Creation, Publishing and Games,
where he was responsible for helping to transform IP from the
various content partners into evergreen franchise properties at
Disney’s parks and resorts, including Star Wars: Galaxy’s Edge
lands at Walt Disney World and Disneyland, Toy Story Land at Walt
Disney World and Shanghai Disneyland, and Pixar Pier and the
upcoming Avengers Campus at Disney California Adventure Park.
Mr. Daniel also served as Senior Vice President of Strategy and
Business Development for Disney Consumer Products and Interactive
Media, and prior to that, as Vice President of Distribution
Strategy at Walt Disney Studios, where he worked closely with the
leadership in developing the Company’s film content distribution
strategy across multiple platforms and played a key role in the
commercialization of the Studio’s films.
“Kareem is an exceptionally talented, innovative and
forward-looking leader, with a strong track record for developing
and implementing successful global content distribution and
commercialization strategies,” said Mr. Chapek. “As we now look to
rapidly grow our direct-to-consumer business, a key focus will be
delivering and monetizing our great content in the most optimal way
possible, and I can think of no one better suited to lead this
effort than Kareem. His wealth of experience will enable him to
effectively bring together the Company’s distribution, advertising,
marketing and sales functions, thereby creating a distribution
powerhouse that will serve all of Disney’s media and entertainment
businesses.”
“I’m honored to be able to lead this new organization during
such a pivotal and exciting time for our Company, and I’m grateful
to Bob for giving me the opportunity,” said Mr. Daniel. “It’s a
tremendous privilege to work with the talented and dedicated teams
that will comprise this group, and I look forward to a close
collaboration with the outstanding and incredibly successful team
of creative content leaders at the Company, as together we build on
the success we’ve already achieved in our DTC and legacy
distribution business.”
With the reorganization, the Direct-to-Consumer and
International business will no longer be managed on a combined
basis. In Ms. Campbell’s role leading international operations, she
will be responsible for coordinating and integrating activities
across the various business units in each market to best represent
the Company’s overall interests, and will report to Mr. Chapek. In
her role leading direct-to-consumer operations for Disney+, Hulu
and ESPN+, she will report to Mr. Daniel.
The new structure is effective immediately, and the Company
expects to transition to financial reporting under this structure
in the first quarter of fiscal 2021.
The Company will hold a virtual Investor Day on December 10,
where it will present further details of its direct-to-consumer
strategies.
Forward-Looking Statements:
Certain statements and information in this communication may be
deemed to be “forward-looking statements” within the meaning of the
Federal Private Securities Litigation Reform Act of 1995, including
statements such as business structuring plans and the business
impacts thereof, business positioning, future growth or value and
other statements that are not historical in nature. These
statements are made on the basis of management’s views and
assumptions regarding future events and business performance as of
the time the statements are made. Management does not undertake any
obligation to update these statements.
Actual results may differ materially from those expressed or
implied. Such differences may result from actions taken by the
Company, including restructuring or strategic initiatives
(including capital investments, asset acquisitions or dispositions,
integration initiatives and timing of synergy realization, new or
expanded business lines or cessation of certain operations) or
other business decisions, as well as from developments beyond the
Company’s control, including:
- changes in domestic and global economic conditions, competitive
conditions and consumer preferences;
- adverse weather conditions or natural disasters;
- health concerns;
- international, regulatory, political, or military
developments;
- technological developments; and
- labor markets and activities;
each such risk includes the current and future impacts of, and
is amplified by, COVID-19 and related mitigation efforts.
Such developments may further affect entertainment, travel and
leisure businesses generally and may, among other things, affect
(or further affect, as applicable):
- the performance of the Company’s theatrical and home
entertainment releases;
- the advertising market for broadcast and cable television
programming;
- demand for our products and services;
- construction;
- expenses of providing medical and pension benefits;
- income tax expense;
- performance of some or all company businesses either directly
or through their impact on those who distribute our products;
and
- achievement of anticipated benefits of the TFCF
transaction.
Additional factors are set forth in the Company’s Annual Report
on Form 10-K for the year ended September 28, 2019 under Item 1A,
“Risk Factors,” Item 7, “Management’s Discussion and Analysis,”
Item 1, “Business,” and subsequent reports, including, among
others, quarterly reports on Form 10-Q and Current Reports on Forms
8-K.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201012005777/en/
Zenia Mucha Corporate Communications (818) 560-5300
zenia.mucha@disney.com
David Jefferson Corporate Communications (818) 560-4832
david.j.jefferson@disney.com
Lowell Singer Investor Relations (818) 560-6601
lowell.singer@disney.com
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