Disney DCI Media

With low ticket sales at its parks and blockbuster movie delays, Disney CEO Bob Chapek officially announced a reorganization at the company and will focus on its streaming platforms going forward.

The reorganization will create three divisions focused solely on producing exclusive content and will allow its network heads to determine where it will be distributed (streaming, television, theaters).

These changes are a significant shift in its content production strategy as it primarily determined the distribution beforehand.

It’s no surprise that Disney is facing its fair share of revenue-generating challenges, but tightening the only revenue stream that it has is a sure-fire way to survive in a post-pandemic world.

Teachable Moment:

What Chapek is really doing here is clearing up any potential roadblocks to produce high-quality content. He doesn’t want any chance of dipping into low-quality and is making sure not to pigeonhole any releases by predetermining its distribution.

The new structure helps clear out what Disney wants to be known for - original content.