American media giant, Disney has recently revealed that it will be restructuring its entertainment and media divisions. The company now intends to lay more emphasis on its streaming platform as more people shift towards digital platforms.

Reportedly, Disney is planning to centralize its media business into a single enterprise that will look after sales, Disney+ and content distribution. This change would significantly boost its direct-to-consumer strategy. Incidentally, Disney’s shares witnessed a rise of 5% after the announcement.

According to reliable sources, this move comes during a time where the global pandemic has hampered the theatrical business and encouraged the adoption of online streaming alternatives like Amazon Prime, Netflix and Disney’s own-Disney+. Looking at its figures from August, Disney has managed to gain more than 100 million paid subscribers on its streaming mediums, out of which, over 50% are subscribers of Disney+.

Speaking on the move, Bob Chapek, Chief Executive Officer, Disney, said that COVID-19 wasn’t the sole reason for this shift. Instead, the virus just helped accelerate this process of transition. The company was planning to make this transition anyway.

Moreover, Disney is focusing on all investments such as dividends while it seeks to expand its spending on newer content. However, the board of directors will make the final decision on Disney’s dividend payouts, explained Chapek.

As for Disney’s theme parks, the company has decided to stick with the 25% cap attendance at its Florida theme park until the U.S. Centers for Disease Control and Prevention releases new guidelines.

Commenting on this matter, Chapek said that the company is bounded by the 6-foot social-distancing measure by the CDC. This indirectly results in a park capacity of 25%. Besides, the chances of Disneyland reopening anytime soon are also meager. This could further lead to more job cuts in the theme park.

Source Credit: https://www.cnbc.com/2020/10/12/disney-reorganizes-to-focus-on-streaming-direct-to-consumer.html