New Structure Consolidates the Company’s
Direct-to-Consumer Services, Technology and International Media
Operations into a Single, Worldwide Business to Capitalize on
Growth Opportunities
Parks and Resorts and Consumer Products
Operations Combined to Create New Hub Where Disney’s Stories,
Characters and Franchises Come to Life
Kevin Mayer Named Chairman of
Direct-to-Consumer and International Segment
Bob Chapek Named Chairman of Parks, Experiences
and Consumer Products Segment
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 (NYSE: DIS) 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.
“In addition, we are merging our Consumer Products and Parks
operations under one segment, combining strategy and resources to
produce even more compelling products and experiences that bring
our stories and characters to life for consumers,” Mr. Iger
said.
Bob Chapek, Chairman, Walt Disney Parks and Resorts, will assume
additional responsibility for all of Disney’s consumer products
operations globally, including licensing and Disney stores, as
Chairman of the new Parks, Experiences and Consumer Products
business segment. “Bob comes to this new role with an impressive
record of success at both Parks and Resorts and Consumer Products,
and he is the perfect leader to run these combined teams,” Mr. Iger
said. Mr. Chapek will continue to report directly to Mr. Iger.
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 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.
During Mr. Mayer’s tenure at Disney, he has overseen the
Company’s key strategic acquisitions of Pixar, Marvel, Lucasfilm,
and most recently, its pending deal for 21st Century Fox. Prior to
becoming Senior Executive Vice President and Chief Strategy
Officer, Mr. Mayer served as Executive Vice President, Corporate
Strategy and Business Development.
“I want to thank Bob for giving me the opportunity to lead the
talented teams who, through the power of new technology and
innovation, are creating the future of entertainment viewing,” Mr.
Mayer said. “Delivering our great stories and characters directly
to consumers on all high-quality devices around the world will
provide the Company with meaningful new revenue streams and
opportunities for growth.”
PARKS, EXPERIENCES AND CONSUMER PRODUCTS
The new Parks, Experiences and Consumer Products segment 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 Mr. 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 around the world; and the shopDisney
e-commerce platform. By uniting Disney’s consumer products business
and Disney Parks’ robust retail and e-commerce operations, the
Company will be able to share resources and best practices to
provide consumers with incomparable branded products and retail
experiences that only Disney can create.
Mr. Chapek has served as Chairman, Walt Disney Parks and
Resorts, since 2015, overseeing the Company’s iconic travel and
leisure businesses, which include six resort destinations in the
U.S., Europe and Asia; Disney Cruise Line; Disney Vacation Club;
and Adventures by Disney. Prior to that, he was President of Disney
Consumer Products, where he refocused the business on a brand- and
franchise-driven strategy while launching new products and retail
experiences that combine technological innovation and
creativity.
“Having worked with the exceptional teams at both Parks and
Resorts and Consumer Products, I know this combination of
incredible skills and resources will lead to a whole host of new
creative ideas for high-quality products and experiences to delight
our guests,” Mr. Chapek said.
MEDIA NETWORKS
The Disney Media Networks business segment is co-chaired by Ben
Sherwood, President, Disney|ABC Television Group, and James Pitaro,
who was recently named President of ESPN and previously served as
Chairman, Disney Consumer Products and Interactive Media. The Media
Networks segment will remain virtually the same, with the exception
of the international Disney Channel operations that are moving to
the Direct-to-Consumer and International business segment along
with management of global advertising sales/technology.
STUDIO ENTERTAINMENT
The Studio Entertainment business segment is led by Alan F.
Horn, Chairman, 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.
BIOGRAPHIES:
https://thewaltdisneycompany.com/about/#leadership
Kevin
Mayerhttps://ditm-twdc-us.storage.googleapis.com/Kevin-Mayer-Bio.pdf
Bob
Chapekhttps://ditm-twdc-us.storage.googleapis.com/Bob_C_bio_April42017_TWDC.pdf
About The Walt Disney Company:
The Walt Disney Company, together with its subsidiaries, is a
diversified worldwide entertainment company with operations in four
business segments: Media Networks, Studio Entertainment,
Direct-to-Consumer and International; and Parks, Experiences and
Consumer Products. Disney is a Dow 30 company and had annual
revenues of $55.1 billion in its Fiscal Year 2017.
Forward-Looking Statements:
Certain statements in this press release may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are made
on the basis of our views and assumptions regarding future events
and business performance as of the time the statements are made.
Management does not undertake any obligation to update these
statements. Actual results may differ materially from those
expressed or implied. Such differences may result from actions
taken by the Company, including restructuring or strategic
initiatives, as well as from developments beyond the Company’s
control including international, political, or military
developments, health concerns, technological developments and
changes in domestic and global economic conditions that may affect
our businesses generally. Additional factors are set forth in the
Company’s Annual Report on Form 10-K for the year ended September
30, 2017 under Item 1A “Risk Factors,” and subsequent reports.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180314005699/en/
The Walt Disney CompanyZenia MuchaCorporate
Communicationszenia.mucha@disney.com(818) 560-5300orDavid
JeffersonCorporate Communicationsdavid.j.jefferson@disney.com(818)
560-4832
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