2020 has been such a difficult year for the entertainment business, specifically theaters. COVID protocols shut down theaters for most this year. What future is in store for them is currently unknown as places open and close? Even in areas where they can open, consumer confidence is still very low. For this reason, many studios are having to make tough choices to seek revenue elsewhere. Specifically in streaming services and VOD.
One of those studios that we have seen make changes is the Walt Disney Company. Some films have gone straight to their streaming services. Mulan was also released via Disney+ for an extra fee. Now today they have announced one of it’s largest internal restructurings. All of this in order to be able to place a larger focus on it’s streaming services.
On Monday, Walt Disney Company released a statement saying that it intends to combine all of its entertainment businesses into one singular organization. Going forward their movie studios, sports content providers, entertainment group, and direct-to-consumer products will now all be under the same umbrella.
Disney chief Bob Chapek also made the announcement that Kareem Daniel, Disney publishing and consumer products head, has been promoted to oversee the entire new media and entertainment group. At some point, all of the distribution, sales, and advertising of film and domestic television will fall under his domain. Despite all of this restructuring, no changes have been made. Also even though Daniel will be serving as the head of the new entertainment group, all of the executives will still report directly to Chapek.
According to Chapek, immediate restructuring will allow the company to put more focus on Disney+, Hulu, and ESPN+. “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,” 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.”
With no theaters opening anytime soon and with some of their parks still closed, it’s vital for them to make the necessary adjustments in a post-COVID world. Virus or no virus, life must go on and so must adapt our forms of entertainment. If people aren’t confident to visit theaters, then they must make adjustments to get their content to consumers.
What do you think of the restructuring by the Walt Disney Company? Let us know in the comment section below!
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