Netflix warned, half saved. Disney announces an internal revolution to the group and decides to bet everything on streaming. The coronavirus pandemic has hit the Mickey Mouse group hard, forced to cut 28 thousand jobs in the United States between amusement parks, events and merchandising. However, there is a business which, despite the difficulties, has continued to grow. It's about Disney+, the streaming content platform of films, television series and other entertainment content which, thanks to the closure of cinemas, has now reached 60,5 million subscribers worldwide. In less than a year of life (the service was launched on November 12, 2019), Disney+ has achieved the target set for 2024, placing itself at third place for number of users, after Netflix (193 million subscribers) and Amazon Prime (150 million). And it is precisely on the media and entertainment division that the American giant intends to focus on to raise its head and overcome the crisis caused by the pandemic.
“There is a drastic transformation underway in the market and you can lead or be led by it, we choose to lead it,” he said Bob Chapek, new CEO of Disney, referring to the new online consumer habits.
The company has combined its TV networks, studios and direct-to-consumer businesses into a single division, called Media and Distribution. Leading the division will be Kareem Daniel, long-time manager of the company and right-hand man of the CEO.
“Our creative teams will focus on what they do best, which is create world-class, franchise-based content, while our newly centralized global distribution team will focus on distributing and monetizing that content in the most optimal way across all platforms, including Disney+, Hulu, ESPN+ and the upcoming international streaming service Star. the society.
Chapek also admitted that the reorganization could lead to a further reduction in personnel, but probably not on the same scale as what affected the parks division, which last month has laid off about 28.000 workers after Disneyland in California could no longer be reopened.
Disney's new focus on streaming seems to appeal to the market, with the stock gaining 3,2% of its value following the announcement.
