On Wednesday, The Walt Disney Company announced a company-wide strategic reorganization, effective immediately, that highlights current growth initiatives, according to CNBC.
The changes are concentrated in the Parks and Resorts and Direct-to-Consumer areas.
Walt Disney Parks and Resorts will absorb the Disney Consumer Products and Interactive Media Segment, becoming the Disney Parks, Experiences and Consumer Products Segment. Current Disney Parks and Resorts Chairman Bob Chapek will be Chariman of this newly-formed segment of the company.
A brand new segment called the Direct-to-Consumer and International Segment was created, honing in on the company’s current efforts to grow their direct-to-consumer market and to capitalize on company-wide growth opportunities.
This 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. Kevin Mayer, currently Disney’s Chief Strategy Officer, was named Chairman of the Direct-to-Consumer and International Segment.
The other two segments of the company are Disney Media Networks and Disney Studio Entertainment. Both segments are essentially staying the same as they were before the corporate restructuring.
Disney Media Networks is co-chaired by Ben Sherwood, President of the Disney|ABC Television Group, and James Pitaro, the recently named President of ESPN. Disney Channel operations are moving to the Direct-to-Consumer and International segment, but the rest will stay the same.
Alan F. Horn, Chairman of Walt Disney Studios, is now chairman of Disney Studio Entertainment. This segment is staying essentially the same.
Bob Chapek is getting more power? Oh dear. . .
Not good for consumers. Or shareholders. Bob Chapek and Disney current management is incentive based on IMMEDIATE cuts and profit, with NO vision towards long term product. This means cut backs. Poor quality. A ‘who cares’ to a product that would bring guests back as Disney used to be known for decades ago. It’s no longer about legacy or return guests. It’s about how much this hour they can make off the customers (they no longer call them guests) in the theme parks. No reason to add or maintain rides. Just add festivals and sell them more drinks. And charge more for parking. Chapek goes home with a bigger check that way.