In a major business reorganizational move, Disney announced on Monday that its media and entertainment section will now start focusing on ‘streaming,’ and chalk out strategies to enhance its growth.
After the news was declared, the stocks of Disney went up by 5%.
Disney’s New Strategy- Expert Opinion
Commenting on the stock-rise, an investor of Disney and a managing partner at hedge fund Gullane Capital Partners said that this response was a confirmation of the fact that the direct to consumer model has been well-received. It will also accelerate Disney’s growth, he added.
He further said that this move will help Disney to improve the quality of its content and lead to focused distribution. It will help in easing corporate complications and also lower the expenses.
Miller commented that this reorganizational move will urge Disney to monetize the contents in-demand and also recover the losses faced at other times of the year.
Disney’s Plan- An Overview
A new Media and Entertainment Distribution group will be created by Disney as a part of its new plan. This team will be assigned the task of monetizing via ad sales and distribution. The streaming services of the company like Disney+, ESPN +, and Hulu will be supervised by this group.
The former president of consumer products, games, and publishing division of Disney, Kareem Daniel will head the team. Although the news is a sudden one, it’s not surprising considering the damage inflicted by the coronavirus pandemic.