A new structure to consolidate Disney’s Direct-to-Consumer Services, Technology and International Media Operations into a single, worldwide business has been announced. It is a direct move to position Disney to compete with Netflix as they prepare to launch their new streaming offerings.
Kevin Mayer has been named Chairman of Direct-to-Consumer and International Segment in the following press release from the House of Mouse:
BURBANK, Calif., March 14, 2018—To capitalize on today’s rapidly changing media landscape and more closely align with the Company’s priorities for future growth–including creating high-quality content, technological innovation, global expansion and direct-to-consumer distribution–The Walt Disney Company today announced a strategic reorganization of 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.
“We are strategically positioning our businesses for the future, creating a more effective, global framework to serve consumers worldwide, increase growth, and maximize shareholder value,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “With our unparalleled Studio and Media Networks serving as content engines for the Company, we are combining the management of our direct-to-consumer distribution platforms, technology and international operations to deliver the entertainment and sports content consumers around the world want most, with more choice, personalization and convenience than ever before.”
Kevin Mayer, who has served as Disney’s Chief Strategy Officer since 2015, has been named Chairman of the new Direct-to-Consumer and International business segment. “Kevin is a proven leader who has played a critical role in bringing together the collection of creative and technological assets that will allow Disney to offer unparalleled entertainment experiences in a direct-to-consumer future,” Mr. Iger said. Mr. Mayer will continue to report directly to Mr. Iger.
The newly created Direct-to-Consumer and International segment will serve as a global, multiplatform 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.
The Disney-branded direct-to-consumer streaming service, which will launch in late 2019 and has yet to be named, will be the exclusive home for subscription video-on-demand viewing of the newest live-action and animated movies in the Pay TV window from Disney, Pixar, Marvel and Lucasfilm. It will also feature an impressive array of original and exclusive series and movie programming, along with thousands of titles from the Disney film and television 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, is developing both the Disney-branded and ESPN+ streaming platforms and will now house all consumer-facing digital technology and products across the Company as part of the Direct-to-Consumer and International segment. This center of excellence for technology and data platforms within the Direct-to-Consumer and International segment will provide the Company not only with increased quality and efficiencies, but also greater consumer insights that will allow for more personalization and substantially improved user experiences.
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, giving advertisers a one-stop-shop for reaching audiences across all of Disney’s media properties, including its online and direct-to-consumer platforms. Rita Ferro, President, Advertising Sales, Disney|ABC Television Group, and Edward Erhardt, President, Global Sales & Marketing, ESPN, will now report directly to Mr. Mayer. Advertising technology operations across the Company’s media properties will also be managed under the new segment.
In addition, to more closely align with the Company’s direct-to-consumer initiatives, the Company’s program-sales operations headed by Janice Marinelli—including global distribution of film and television content to the Disney-branded direct-to-consumer streaming service, Hulu and other third-party platforms and channels, as well as Movies Anywhere–will be integrated into the Direct-to-Consumer and International business segment. Ms. Marinelli will report directly to Mr. Mayer.
The Company’s International Channels—including the international Disney Channels—will also be consolidated into the new business segment. Disney’s International Channels are renowned for providing incomparable branded entertainment programming that is both universally appealing and locally relevant, and the production of localized content will continue to grow under the new structure.
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 EMEA (Europe/Middle East/Africa), Asia and Latin America will now report to Mr. Mayer.
Disney revealed late last year that it planned to launch its own direct-to-consumer streaming effort which will feature content from the company’s Pixar, Marvel, Lucasfilm, and Disney studios, is expected to be released in late 2019.
