The Walt Disney Co. reorganized its businesses into four segments: the newly-formed Direct-to-Consumer and International; the combined Parks, Experiences and Consumer Products; Media Networks; and Studio Entertainment. The reorganization is effective immediately.
Kevin Mayer was named chairman of the new Direct-to-Consumer and International business segment. Mayer has served as Disney’s chief strategy officer since 2015. Bob Chapek, formally chairman of Walt Disney Parks and Resorts, will now serve as chairman of the new Parks, Experiences and Consumer Products, with additional responsibilities for all of Disney’s consumer products operations globally, including licensing and Disney stores.
DIRECT-TO-CONSUMER AND INTERNATIONAL
The newly created Direct-to-Consumer and International segment will serve as a global, multiplatform media, technology and distribution organization for 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, its ownership stake in Hulu, and its soon-to-be-launched ESPN+ streaming service, programmed in partnership with ESPN.
The Disney-branded direct-to-consumer streaming service, which will launch late next year and has yet to be named, will be the home for subscription video-on-demand (VOD) viewing of live-action and animated movies in the Pay TV window from Disney, Pixar, Marvel, and Lucasfilm. It will also feature original and exclusive series and movie programming, along with thousands of titles from the Disney film and TV libraries. Senior vice president Agnes Chu will move to the Direct-to-Consumer and International segment and will continue to oversee programming for the upcoming Disney-branded streaming service.
BAMTECH, which is headed by Michael Paull, will develop both the Disney-branded and ESPN+ streaming platforms, and house all consumer-facing digital technology and products as part of the Direct-to-Consumer and International segment.
Management of global advertising sales for Disney’s media properties—including ESPN, ABC, Freeform, and the Disney Channels—will move from Media Networks to the new Direct-to-Consumer and International segment, allowing advertisers to reach audiences across all of Disney’s media properties. Rita Ferro, president of advertising sales for Disney|ABC Television Group, and Edward Erhardt, president of global sales and marketing for ESPN, will now report directly to Mayer. Advertising technology operations across Disney’s media properties will also be managed under the new segment.
The company’s program-sales operations headed by Janice Marinelli will be integrated into the Direct-to-Consumer and International business segment. Marinelli will also report directly to Mayer. Disney’s International Channels will also be consolidated into the new business segment. The new Direct-to-Consumer and International business segment will also be responsible for the distribution of all direct-to-consumer services globally. The Walt Disney International team of regional managers across Europe, Middle East, and Africa (EMEA), Asia, and Latin America will now report to Mayer.
PARKS, EXPERIENCES AND CONSUMER PRODUCTS
Parks, Experiences, and Consumer Products will become the hub where Disney’s stories, characters, and franchises come to life. Disney’s worldwide consumer products business will be merged with Walt Disney Parks and Resorts under Chapek. Disney’s global consumer products operations include the world’s leading licensing business across toys, apparel, home goods, and digital games and apps; the world’s largest children’s publisher; Disney store locations worldwide; and the shopDisney e-commerce platform.
MEDIA NETWORKS
The Disney Media Networks business segment is co-chaired by Ben Sherwood, president of Disney|ABC Television Group, and James Pitaro, who was recently named president of ESPN. The Media Networks segment will remain virtually the same, with the exception of the international Disney Channel operations that will move to the Direct-to-Consumer and International business segment along with management of global advertising sales and technology.
STUDIO ENTERTAINMENT
The Studio Entertainment business segment is led by Alan F. Horn, chairman of The Walt Disney Studios, and remains virtually the same, with the exception of the management of program sales moving to the Direct-to-Consumer and International business segment. The Studio Entertainment segment includes Walt Disney Animation Studios, Disney Live Action, Pixar Animation Studios, Marvel Studios, and Lucasfilm, as well as Disney Theatrical Group and Disney Music Group.
The Company expects to transition to financial reporting under the new structure by the beginning of fiscal 2019.
