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article imageDisney reorganizing in line with its new growth initiatives

By Ken Hanly     Mar 14, 2018 in Business
Burbank - The Disney Company announced on Wednesday, March 14 that it was reorganizing in keeping with its new growth initiatives, such as direct-to-consumer offerings.
An immediate change includes the formation of a new business segment, direct-to-consumer and international. The new segment will include the technology and platforms in the company's streaming endeavors, but as well the distribution of these services.
The division includes Disney's's already existing stake in Hulu the subscription on demand video company as well as soon to launched ESPN+ and Disney's very own streaming service.
Disney claims it will start financial reporting under this new structure starting in the beginning of fiscal 2019.
CEO claims reorganization will prepare company for the future
Disney Chief Executive Officer(CEO) Bob Iger said the reorganization will put the company in a better position in the future and help the company to "deliver the entertainment and sports content consumers around the world want most, with more choice, personalization and convenience than ever before."
Iger also said: “With our unparalleled Studio and Media Networks serving as content engines for the Company, we are combining the management of our direct-to-consumer distribution platforms, technology and international operations to deliver the entertainment and sports content consumers around the world want most, with more choice, personalization and convenience than ever before.”
The full statement on reorganization can be found in this article.
Disney claims its planned streaming service can compete with Netflix
Disney is already home to box office powerhouses. Iger said: "When you go to market with "Star Wars" movies, Disney movies, Pixar movies, Marvel-branded and branded television shows under those umbrellas ... that will give us the ability to probably spend less than if we had gone to market with a direct-to-consumer service without these brands."
Disney already has shows and movies that consumers desire and actively seek. Disney will make these exclusively available on its planned streaming service. It will not face the same pressure to outbid other companies. Netflix claims it plans on spending between $7.5 and $8 billion on content just this year.
Merger with 21st Century Fox
The reorganization takes place in the context of a merger agreement with 21st Century Fox. Last December 14th Disney and Fox reached a $52 billion deal to merge. Disney would get most of Fox's entertainment assets including filmed entertainment, cable entertainment and direct satellite divisions in the UK, Europe and Asia. However, it does not include Fox Broadcasting Company, Fox Television Stations, New Channel, Business Network and Fox Sports. These will be spun off as an independent company.
The merger still needs to be approved by the US Department of Justice, Antitrust Division before it can go ahead.
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