What's Behind Disney's Reorganization?

The restructuring plan reorganizes the firm into four segments with one new segment, direct-to-consumer and international. The plan also combines two current segments, parks & resorts and consumer products, into one segment that will be under the purview of Chapek, the current chair of parks & resorts. The interactive division will shift from consumer products to the direct-to-consumer segment. The new segment will also contain the firm’s two announced OTT offerings, EPSN+, and the unnamed Disney SVOD service. Mayer will also oversee the international media networks and BAMTech along with the firm’s investment in Hulu. Global ad sales will also shift from media networks to direct-to-consumer. This will allow the firm to have one division running sales for all of its properties including online ones. The media networks group will now contain the U.S. cable channels including ESPN and the ABC broadcast network along with owned-and-operated TV stations. Media networks will be cochaired by Ben Sherwood, the head of ABC Television, and James Pitaro, the recently announced President of ESPN. The studio segment is largely unchanged.

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