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Disney will restructure to focus on Disney development+
Disney media conglomerate to reorganize media and entertainment destinations. The company wants to focus on the development of Disney streaming service+. Writes about it CNBC.
The corporation intends to centralize its media direction into a single organization that will deal with content distribution, advertising sales and Disney+. A focus on streaming service will allow for more efficient content creation and responsiveness to audience needs.
CEO Bob Chapek said the decision was inevitable. He also noted that the company does not plan to significantly reduce the staff, as happened as a result of the outbreak of the pandemic, when 28 thousand people were laid off.
“I would not call this decision a response to COVID-19. In my opinion, the outbreak of coronavirus infection has only accelerated the inevitable transition, which should have happened regardless of this, “said Chapek.
At the time of publication of the material, more than 100 million people have subscribed to Disney services, of which 50 million are on Disney+. After the announcement of the restructuring, the company’s shares rose by 5%.
Disney’s change in course is likely due to the problems of the film distribution business, which has been hit hard by the COVID-19 outbreak. According to CNBC, by the end of September, the shares of American cinemas fell sharply: the cost of AMC fell by 32%, Cinemark – by 70%, and Marcus Theaters – by 75%. Cinemas total share price plummets nearly $ 2.7 billion. Major blockbusters postponed due to rental problems. So, Disney had to postpone the premiere of “Black Widow” and the cartoon “Soul”.