10.13.20 - If there was any question that Disney+ has become the center of Disney's media empire, the company took away all doubt recently. Disney announced a major reorganization of its media and entertainment business on Monday to "further accelerate" its streaming strategy. The company's stock was up about 5% in after-hours trading following the news.
"This is further proof that the direct to consumer model is not only well-received, but more critical than ever to Disney's future," said a Disney investor. "These moves will not only result in higher quality content, and focused distribution, but allow the company to streamline corporate complexity and hopefully lower expenses."
Under the reorganization, Disney will create a new Media and Entertainment Distribution group that will be in charge of monetizing content via distribution and ad sales. The group will also oversee the operations of the company's streaming services like Disney+, Hulu, and ESPN+.
While the reorganization is a major announcement, it's not necessarily a surprising one. Disney+ has quickly become the focal point and a saving grace of Disney's business this year as the coronavirus pandemic has ravaged its bottom line.
The streaming service, which isn't even a year old yet, now has more than 60 million subscribers. The company told investors last year that it projected Disney+ would have 60 million to 90 million global subscribers by 2024.