Walt Disney to reorganize its entertainment sector to boost its streaming services
On Monday, Walt Disney Co (DIS) announced that it would start reorganizing its media and entertainment sector to accelerate the growth of Disney+ and its other streaming services.
“Managing content creation distinct from distribution will allow us to be more effective and nimble in making the content consumers want most, delivered in the way they prefer to consume it,” Disney’s Chief Executive Officer Bob Chapek said.
Disney reported that it would separate the development and production of programming from distribution in order to be more responsive to consumer demands.
“We are pleased to see that Disney is focused on the same opportunity that makes us such enthusiastic shareholders: investing heavily in the (direct-to-consumer) business, positioning Disney to thrive in the next era of entertainment,” Third Point’s Chief Executive Officer Daniel Loeb stated.
Disney shares went up by nearly 5% to $130.76 in after-hours trading.