Things you should know about the Disney restructure
With 60 million new subscribers to Disney + in the streaming service’s first year, it’s unsurprising that the overall Disney Giant has sat up and started to pay attention. Even so, the staggering nature of their entire corporate overhaul around streaming and direct-to-consumer is hard to grasp unless you’ve been paying full attention. BLAKE & WANG P.A entertainment lawyer Los Angeles highlights some key aspects you should know around this bold move.
We’ve looked at the nitty-gritty of the restructure in detail elsewhere. In effect, while their live entertainment arm (covering the parks and experiences) sees little restructuring, the newly created ‘Media and Entertainment Distribution Group’ we saw created last fall pulled many older content distribution arms into one sleeker, more targeted operation. This week, we saw the ‘Disney Media and Entertainment Distribution Technology Group, or DMED, created, with 8 key subgroups now involved.
With this reorganization, we see all of Disney’s creative arms pushed towards making original content for its streaming services. As some examples of what to expect, this included Star Wars animated series, upcoming Marvel series releases, and more. This is set to be pushed to fast-track in the hopes of drawing even more interest to Disney +.
The restructure is also effective immediately. It’s tough not to speculate that this is intended to offset some of the budgetary issues Disney has faced during the lengthy closure of both movie studios and most of its theme parks and experiences during 2020. Had it not been for their perfect positioning to capitalize on the unanticipated streaming boom, this would have been disastrous to their balance sheet. Will this heavy focus on tech and the direct-to-consumer boom pay off for them? So far, Disney remains golden in every business decision it has made, despite the tumultuous nature of the last year. Time will tell how this restructuring settles into real-time work.
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