by Thinus Ferreira
The Walt Disney Company late on Monday announced a massive global restructuring making a focus on creating streaming content for a digital world and its direct-to-consumer streaming business its main priority, as it announced that it is solidifying its content output under a single media and entertainment distribution unit.
Disney's main focus will now be to develop and produce original content for its video streaming services like Disney+ and its still to launch Star international streaming service.
Creating content for Disney's digital streaming services will now be the Disney's main focus, taking over in importance from its legacy platforms like Disney's various pay-TV channels that it still runs around the world, including in Africa and South Africa through its FOX, Disney and National Geographic brands on pay-TV operators like MultiChoice and China's StarTimes.
Disney's massive reorganisation comes just under a year after the launch of its Disney+ video streaming service that has now passed 60 million subscribers globally and is just behind Netflix.
Disney has not rolled out Disney+ in South Africa or anywhere on the African continent, with no announcement when or if it plans to do so, leaving Africa as the only continent without access to Disney+ besides South Africa where Brazil is set to get Disney+ in November.
Under the major reorganisation, Disney's media distribution and commercial activity is being solidified into a single, global media and entertainment distribution unit that will be headed up by Kareem Daniel, previously president for consumer products, games and publishing at Disney.
Disney will now create content in three different silo's: studios, general entertainment and sports, like ESPN.
Under studios, Disney will focus on creating branded theatrical and episodic content based on Disney's franchises for theatrical exhibition, Disney+ and Disney'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.
Under general entertainment, Disney will focus on creating general entertainment episodic and original long-form content for Disney's streaming platforms and its pay-TV channels, as well as broadcast networks in America.
This group will include the content engines of 20th Television, ABC Signature and Touchstone Television; ABC News; Disney Channels; Freeform; FX; and National Geographic.
Under sports will fall ESPN’s live sports programming, as well as sports news and original and non-scripted sports-related content for Disney's pay-TV channels like ESPN, as well as ESPN+.
Rebecca Campbell will now serve as chairman of Disney's international operations and direct-to-consumer.
On 10 December 2020 The Walt Disney Company will present another Disney Investors' Day where the Mouse House will reveal more about its plans for 2021 and its corporate reorganisation as it continues to pivot to making digital video streaming its main global focus.
"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," says Bob Chapek, Disney CEO, in a statement on Monday.
"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 centralised 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."
Speaking about Kareem Daniel, Bob Chapek says he is "an exceptionally talented, innovative and forward-looking leader, with a strong track record for developing and implementing successful global content distribution and commercialisation strategies".
"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 Disney's distribution, advertising, marketing and sales functions, thereby creating a distribution powerhouse that will serve all of Disney’s media and entertainment businesses."
Kareem Daniel in the statement says that "I'm honoured to be able to lead this new organisation during such a pivotal and exciting time for our company, and I’m grateful to Bob for giving me the opportunity".
"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 direct-to-consumer and legacy distribution business."
