Walt Disney Restructures Entertainment Businesses to Boost Streaming

FILE PHOTO: The logo of the Walt Disney Company is displayed above the floor of the New York Stock Exchange shortly after the closing bell as the market takes a significant dip in New York, U.S., February 25, 2020. REUTERS/Lucas Jackson
FILE PHOTO: The logo of the Walt Disney Company is displayed above the floor of the New York Stock Exchange shortly after the closing bell as the market takes a significant dip in New York, U.S., February 25, 2020. REUTERS/Lucas Jackson
TT
20

Walt Disney Restructures Entertainment Businesses to Boost Streaming

FILE PHOTO: The logo of the Walt Disney Company is displayed above the floor of the New York Stock Exchange shortly after the closing bell as the market takes a significant dip in New York, U.S., February 25, 2020. REUTERS/Lucas Jackson
FILE PHOTO: The logo of the Walt Disney Company is displayed above the floor of the New York Stock Exchange shortly after the closing bell as the market takes a significant dip in New York, U.S., February 25, 2020. REUTERS/Lucas Jackson

Walt Disney Co DIS.N said on Monday it had restructured its media and entertainment businesses to accelerate growth of Disney+ and other streaming services as consumers increasingly gravitate to digital viewing.

Under the reorganization, Disney will separate the development and production of programming from distribution to be more responsive to consumer demands.

The move came days after activist investor Daniel Loeb of hedge fund Third Point urged Disney to forgo a dividend payment and double its programming investment in streaming.

Disney shares rose nearly 5% in after-hours trading to $130.76.

The media and theme parks company launched the Disney+ streaming service in November 2019. It has exceeded its own targets by drawing more than 100 million streaming customers worldwide to Disney+, Hulu and ESPN+.

Streaming pioneer Netflix Inc NFLX.O boasts 193 million, but has built that customer base over the 13 years.

Loeb had argued that Disney needed to cut its dividend to increase spending on new TV shows and movies to sign up new customers more quickly.

Disney Chief Executive Bob Chapek, in an interview with CNBC, said the company is planning to increase investments in content but he did not say if it was prepared to cut its dividend to finance the strategy.

“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,” Chapek, who took the company’s top job in February, said in a separate statement.

In a statement on Monday, Loeb welcomed Disney’s revamp of its media and entertainment structure, Reuters reported.

“We are pleased to see that Disney is focused on the same opportunity that makes us such enthusiastic shareholders: investing heavily in the (direct-to-consumer) business, positioning Disney to thrive in the next era of entertainment,” Loeb said.

Under the changes, Disney’s studios, general entertainment and sports business would come under one division while distribution and commercialization would fall under a separate global unit.

Disney said its creative teams would develop and produce programming for streaming and traditional platforms, and the distribution group would decide where customers would see it.

Chapek told CNBC there would be layoffs as a result of “centralization” of functions but did not say how many.

Kareem Daniel, formerly president of consumer products, games and publishing, will oversee Disney’s new media and entertainment distribution group, the company said.

Alan Horn and Alan Bergman will continue to head Disney’s studio operations, which will manage programming from big franchises including Marvel, Star Wars, Disney animation and Pixar. Peter Rice will run general entertainment programming and Jimmy Pitaro will oversee sports.

AT&T T.N, which debuted the HBO Max streaming service in May, reorganized in August to combine its film and TV operations under one studio head to better compete in the streaming media wars.

Disney said it would hold an investor day on Dec. 10 to provide more information about its strategy.



How Lewis Hamilton and Apple Brought F1 Racing to the Movie Screen 

Lewis Hamilton of Great Britain and Scuderia Ferrari waves to the crowd on the drivers parade prior to the F1 Grand Prix of Canada at Circuit Gilles-Villeneuve on June 15, 2025 in Montreal, Quebec. (Getty Images/AFP)
Lewis Hamilton of Great Britain and Scuderia Ferrari waves to the crowd on the drivers parade prior to the F1 Grand Prix of Canada at Circuit Gilles-Villeneuve on June 15, 2025 in Montreal, Quebec. (Getty Images/AFP)
TT
20

How Lewis Hamilton and Apple Brought F1 Racing to the Movie Screen 

Lewis Hamilton of Great Britain and Scuderia Ferrari waves to the crowd on the drivers parade prior to the F1 Grand Prix of Canada at Circuit Gilles-Villeneuve on June 15, 2025 in Montreal, Quebec. (Getty Images/AFP)
Lewis Hamilton of Great Britain and Scuderia Ferrari waves to the crowd on the drivers parade prior to the F1 Grand Prix of Canada at Circuit Gilles-Villeneuve on June 15, 2025 in Montreal, Quebec. (Getty Images/AFP)

Racing legend Lewis Hamilton, a producer on an upcoming movie starring Brad Pitt as a fictional Formula 1 driver, wanted the film to show the reality of what it looks, feels and sounds like to speed around a track at 200 miles per hour.

To avoid having Apple's "F1 The Movie" seem "faked" by Hollywood, Hamilton provided input on details such as when drivers should brake or shift gears. The film will be released in theaters by Warner Bros on June 27.

"I really wanted to make sure the authenticity was there, and it worked for both the younger and the older audience, and then making sure that the racing was true to what it is," Hamilton said in an interview with Reuters Television.

"All the other drivers, all the teams, are relying on me to make sure that it does," the seven-time world champion added.

In the movie, Pitt plays a driver who comes out of retirement to mentor a young hotshot portrayed by Damson Idris. Co-stars include Javier Bardem and Kerry Condon.

Portions of the film were shot during real-life F1 events in Abu Dhabi, Mexico City and other Grand Prix stops. The filmmakers would shoot on the tracks during short breaks in the races. Pitt and Idris drove themselves in professional race cars at high speeds.

Before filming started, Hamilton said he met with Pitt at a racetrack in Los Angeles so he could size up the actor's driving skills.

"I really wanted to see, can you actually drive?" Hamilton said. A longtime motorcycle rider and racing fan, Pitt showed a baseline ability at that point that made Hamilton comfortable.

"He already had the knack," Hamilton said, which the actor further developed through weeks of intense training. "He really went in deep," Hamilton said.

"F1" was directed by Joseph Kosinski and produced by Jerry Bruckheimer, the team that put together the thrilling fighter-jet scenes in 2022 blockbuster film "Top Gun: Maverick."

For "F1," they needed new cameras that would work in race cars, which can be slowed down by extra weight.

Producing partner Apple, which began releasing movies in 2019, was able to help.

The company used some of its iPhone technology to adapt a camera system typically used in real F1 cars during TV broadcasts. The hardware looked like a traditional F1 camera but delivered the high-resolution video that the filmmakers wanted for the big screen.

"This movie was just a great example of putting the whole of the company behind a movie," Apple Chief Executive Tim Cook said. "We designed the camera that went into the car to capture the incredible driving experience. It makes you feel like you're actually sitting in the car and experiencing what Brad is experiencing."

Cook said he felt the movie showcased the athleticism required to rise to the elite ranks of F1 driving. Hamilton said he had encouraged more examples of the sport's physical challenges. Drivers can lose five or 10 pounds, he said, from the exertion during a race.

"You have to be able to show that part of it. You're training. You're conditioning your body," Hamilton said. "The car, it beats you up."