ESPN To Feel Impact Of Disney Realignment In Sports, Entertainment, Tech
By Barry Janoff
March 14, 2018: The Walt Disney Co., in what it called a major move to “capitalize on today’s rapidly changing media landscape and more closely align with the company’s priorities for future growth” has unveiled a strategic reorganization of its businesses into four segments.
The Disney Company structure will include the newly-formed Direct-to-Consumer and International; the combined Parks, Experiences and Consumer Products; Media Networks; and Studio Entertainment.
The changes come as Disney is finalizing its $52.4 billion acquisition of 20th Century Fox and other entertainment and sports assets from Fox.
Among the changes that will impact Disney-owned ESPN and other Disney properties is the move of management of global advertising sales for Disney’s media properties — including ESPN, ABC, Freeform and the Disney Channels — from Media Networks to the new Direct-to-Consumer and International segment.
According to Disney, that would give “advertisers a one-stop-shop for reaching audiences across all of Disney’s media properties.”
In addition, BAMTech, in which Disney acquired majority ownership last year and is developing both the Disney-branded and ESPN+ streaming platforms, “will now house all consumer-facing digital technology and products across the company” as part of the Direct-to-Consumer and International segment.
The Disney-branded direct-to-consumer streaming service, scheduled to launch in late 2019 and has yet to be named, will feature some 10,000 live regional, national and international games and events a year, including MLB, NHL, MLS, Grand Slam tennis,and college sports. Individual sport packages will also be available for purchase, including MLB.TV, NHL.TV and MLS Live, according to Disney.
“The Direct-to-Consumer and International segment will serve as a global, multi-platform media, technology and distribution organization for world-class content created by Disney’s Studio Entertainment and Media Networks groups,” according to Disney.
The new segment will be comprised of Disney’s international media businesses and the company’s direct-to-consumer businesses globally, including the upcoming Disney-branded direct-to-consumer streaming service, the company’s ownership stake in Hulu and ESPN+ streaming service, programmed in partnership with ESPN.
It will also be the exclusive home for subscription VOD viewing of the newest live-action and animated movies in the Pay TV window from Disney, Pixar, Marvel and Lucasfilm, beginning with the 2019 theatrical slate, which includes Toy Story 4, Frozen sequel and The Lion King from Disney live-action, according to the company.
Disney will also make a significant investment in an annual slate of original movies, TV shows, short-form content and other Disney-branded exclusives for the service. In addition, the service will feature a vast collection of library content, including Disney and Pixar movies; and Disney Channel, Disney Junior and Disney XD television programming.
“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,” Robert Iger, chairman and CEO for the Disney Company, said in a statement.
“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,” said Iger.
PHOTOS COURTESY DISNEY CO.
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