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Disney says it’s shifting its business around. And it’s going to impact you

Disney will make some structural shifts to prioritize streaming.

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Photo of the Walt Disney Co. logo.

In this Aug. 8, 2017, file photo, The Walt Disney Co. logo appears on a screen above the floor of the New York Stock Exchange.

Richard Drew, Associated Press

Disney is undergoing a major restructuring move within the company with the ultimate goal to prioritize streaming and entertainment services.

  • The company will make its media business one single organization that will distribute content for ad sales and Disney Plus.
  • The move allows content executives to create new films and television series as distribution teams figure out the best location to release them — between television channels, Disney Plus, Hulu or other services, according to The New York Times.

Key quote:

  • “Given the incredible success of Disney+ and our plans to accelerate our direct-to-consumer business, we are strategically positioning our company to more effectively support our growth strategy and increase shareholder value,” Disney CEO Bob Chapek said in a statement to The New York Times. “Managing content creation distinct from distribution will allow us to be more effective and nimble in making the content consumers want most, delivered in the way they prefer to consume it.”

Why now?

The change comes as the pandemic has led to people visiting movie theaters less. The company has pushed for streaming as people have moved over to streaming services.

Chapek told CNBC the restructuring was always going to happen — COVID-19 pandemic or not.

  • “I would not characterize it as a response to COVID. I would say COVID accelerated the rate at which we made this transition, but this transition was going to happen anyway.”
  • “We are tilting the scale pretty dramatically (toward streaming).”