Disney Restructures into Four Business Segments

The Walt Disney Company has reorganized its business segments into the newly formed Direct-to-Consumer and International; the combined Parks, Experiences and Consumer Products; Media Networks; and Studio Entertainment.

Kevin Mayer, Disney’s chief strategy officer since 2015, was appointed chairman of Direct-to-Consumer and International, which will serve as a global, multiplatform media, technology and distribution organization for content created by Disney’s Studio Entertainment and Media Networks groups. The segment comprises the international media businesses and direct-to-consumer businesses globally, including the upcoming Disney-branded and ESPN+ streaming services as well as the company’s stake in Hulu.

Senior VP Agnes Chu will move to Direct-to-Consumer and International and will continue to oversee programming for the upcoming Disney-branded streaming service. BAMTECH, led by Michael Paull, is developing both the Disney-branded and ESPN+ streaming platforms, and will now house all consumer-facing digital technology and products across the company as part of the segment.

Management of global advertising sales for Disney’s media properties will move from Media Networks to Direct-to-Consumer and International. Rita Ferro, president of advertising sales for Disney/ABC Television Group, and Edward Erhardt, president of global sales and marketing for ESPN, will now report directly to Mayer. Advertising technology operations across the company’s media properties will also be managed under the new segment.

The program-sales operations headed by Janice Marinelli will be integrated into Direct-to-Consumer and International. Marinelli will work under Mayer. The company’s international networks, including Disney Channel, will also be consolidated into the new business segment.

In addition, Direct-to-Consumer and International will distribute all direct-to-consumer services around the world. The Walt Disney International team of regional managers across EMEA, Asia and Latin America will now report to Mayer.

Robert A. Iger, chairman and CEO of The Walt Disney Company, commented: “Kevin is a proven leader who has played a critical role in bringing together the collection of creative and technological assets that will allow Disney to offer unparalleled entertainment experiences in a direct-to-consumer future.”

Mayer said: “I want to thank Bob for giving me the opportunity to lead the talented teams who, through the power of new technology and innovation, are creating the future of entertainment viewing. Delivering our great stories and characters directly to consumers on all high-quality devices around the world will provide the company with meaningful new revenue streams and opportunities for growth.”

Meanwhile, Bob Chapek, chairman of Walt Disney Parks and Resorts, is taking on additional duties for all CP operations globally, including licensing and Disney stores, as chairman of the new Parks, Experiences and Consumer Products division.

Iger noted: “We are merging our Consumer Products and Parks operations under one segment, combining strategy and resources to produce even more compelling products and experiences that bring our stories and characters to life for consumers.

“Bob comes to this new role with an impressive record of success at both Parks and Resorts and Consumer Products, and he is the perfect leader to run these combined teams.”

Chapek noted: “Having worked with the exceptional teams at both Parks and Resorts and Consumer Products, I know this combination of incredible skills and resources will lead to a whole host of new creative ideas for high-quality products and experiences to delight our guests.”

Both Mayer and Chapek will continue to work directly under Iger. The Disney Media Networks and Studio Entertainment segments will both remain virtually the same.

“We are strategically positioning our businesses for the future, creating a more effective, global framework to serve consumers worldwide, increase growth and maximize shareholder value,” added Iger. “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.”