Walt Disney Co. Reorganizes to Focus on Streaming -- Update
March 14 2018 - 2:00PM
Dow Jones News
By Imani Moise
Walt Disney Co. unveiled a strategic reorganization to
streamline its direct-to-consumer efforts as the media giant works
to position itself to compete in the changing digital
landscape.
Effective immediately, the company will consolidate its parks
and resorts unit with its consumer products division -- and combine
the management of its streaming initiatives to create a new segment
dedicated to direct-to-consumer platforms. The media networks and
studio entertainment segments will remain.
The company's advertising operations will also move out of the
media networks division and be managed by the new
direct-to-consumer segment.
Disney has been investing heavily to keep up with the different
ways viewers are consuming content. The company plans to launch its
ESPN direct-to-consumer offering, the company's first, later this
year. The new streaming sources are designed to provide a new
source of revenue and reduce its reliance on licensing fees from
third-party distributors.
The company expects to begin reporting quarterly results under
the new segments by the beginning of next year.
Shares rose 0.4% to $104.10 during afternoon trading. The stock
has fallen 3% so far this year while the S&P 500 has risen
3%.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
March 14, 2018 13:45 ET (17:45 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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