Disney announces details of strategic restructuring

The Walt Disney Company has announced details of its strategic restructuring, initially discussed on last night’s earnings call, stating that its plan "will refocus the organization on creativity, empower creative leaders and ensure they are accountable for all aspects of their businesses globally, and put the company’s streaming business on a path to sustained growth and profitability." Effective immediately, the company will be organized into three core business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences and Products. "The leaders of each business segment will have full operational control and financial responsibility for creative development, marketing, technology, sales, and distribution, and will be accountable for driving business efficiencies globally," Disney said in a press release. Disney Entertainment will be co-chaired by Alan Bergman and Dana Walden who will be responsible for the company’s full portfolio of entertainment media and content businesses globally, including streaming. ESPN will include ESPN networks and ESPN+ and will be led by Jimmy Pitaro. Pitaro will also be responsible for the management and supervision of the company’s full portfolio of sports content, products and experiences across all of Disney’s platforms worldwide, including its international sports channels. Effective immediately, several shared-service organizations across the company will support both Disney Entertainment and ESPN, facilitating company-wide efficiencies and creating a more cost-effective, coordinated, and streamlined approach to operations. These include Product and Technology, led by Aaron LaBerge; Advertising Sales, led by Rita Ferro; and Platform Distribution led by Justin Connolly excluding Theatrical Distribution and Music, which will be overseen by Bergman. Outside of North America, the company’s media, entertainment, and sports content and operations will continue to be managed regionally by Luke Kang, President Asia Pacific; Jan Koeppen, President EMEA; Diego Lerner, President LATAM; and K Madhavan, President India. These leaders will report to Bergman, Walden, and Pitaro as part of their global responsibilities. As a result of the changes, Rebecca Campbell, Chairman, International Content and Operations, has decided to leave the company. Campbell will stay on through June to help with the transition. Disney Parks, Experiences and Products – encompassing the company’s award-winning theme parks, cruise line, resort destinations and Adventures by Disney and National Geographic Expeditions, as well as Disney’s global consumer products, games, and publishing businesses – will continue under the leadership of Chairman Josh D’Amaro. The organizational changes will be implemented immediately, and the company will begin reporting financial results under the new business structure by the end of the fiscal year.