According to the latest news, Disney has created a streaming video unit to further streamline their existing services into the digital future. They had recently announced their desire to reorganize the company into different divisions where one will be dedicated to providing direct to consumer streaming services.
To lead this vision, Disney has appointed Kevin Mayer as the new chairman of direct to consumer and international business division. Mayer was the company’s chief strategy officer for nearly 3 years before this promotion. His duties will involve overseeing BAMTech Media, Disney’s stake in Hulu and the Disney Digital Network.
This new development comes right at the heels of the Disney-Fox deal that took place a few months ago. The massive $69 billion deal is currently undergoing review by regulators but the recent complications brought by Comcast Corp’s offer has slowed things down a bit. Disney seems to have their sights set on transitioning themselves into the digital future and pioneering it. Two huge changes made so far includes the “Direct to consumer and international” division mentioned above and the “Parks, experiences and consumer products” division. Disney combined their theme park division with their consumer products division in order to better streamline their products and services.
The company has been losing subscribers to their biggest TV asset, ESPN for quite some time now. Most of the people today are slowly shifting towards digital streaming services since they have more control over what they want to see. Due to shifting the tide of consumer’s needs, the entertainment giant has no other option but to adapt. They have already started pulling some of their first run movies from Netflix in order to provide them through their upcoming streaming service. Once the Disney and Fox deal goes through, the company will have a massive portfolio to add to their digital service and cover a huge portion of the existing market.
The recent news has been quite positive for the company as shares rose by 0.5 percent after the announcement. Some even speculate that Disney might be able to create something close to a monopoly in the digital streaming services market. However, in an ever-changing world, it’s quite difficult to assume anything until it has manifested into reality. Stay tuned for more news.