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
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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.



Universal to Open First European Theme Park Near London

Britain's Prime Minister Keir Starmer delivers a speech about the building in the UK of the first Universal theme park and resort in Europe by US media giant Comcast Corp during a visit to Bedford, north of London, on April 9, 2025. (AFP)
Britain's Prime Minister Keir Starmer delivers a speech about the building in the UK of the first Universal theme park and resort in Europe by US media giant Comcast Corp during a visit to Bedford, north of London, on April 9, 2025. (AFP)
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Universal to Open First European Theme Park Near London

Britain's Prime Minister Keir Starmer delivers a speech about the building in the UK of the first Universal theme park and resort in Europe by US media giant Comcast Corp during a visit to Bedford, north of London, on April 9, 2025. (AFP)
Britain's Prime Minister Keir Starmer delivers a speech about the building in the UK of the first Universal theme park and resort in Europe by US media giant Comcast Corp during a visit to Bedford, north of London, on April 9, 2025. (AFP)

US media giant Comcast Corp has chosen an area north of London for its first Universal theme park and resort in Europe, pledging to build rides and attractions based on its movie franchises that it hopes will rival Disneyland Paris.

The group, which owns the Jurassic Park and Back to the Future movie franchises and the Harry Potter theme park license, said the park in Bedford would create 20,000 jobs during construction and a further 8,000 across the hospitality and creative industries when it opens in 2031.

It is expected to attract 8.5 million visitors in its first year, a number currently only exceeded in Europe by Disneyland Paris to the east of the French capital.

British Prime Minister Keir Starmer and finance minister Rachel Reeves joined Comcast bosses to announce the theme park on Wednesday.

"This will drive growth here and across the country," Starmer said.

The Labor government has pledged to boost investment in infrastructure since it was elected last year, and Britain's economy needs fresh momentum after the highest tax-raising budget since 1993 in October dented business confidence.

The government has pledged to speed up planning decisions and the announcement comes after it approved the expansion of Luton Airport, which is about 20 miles (32 kilometers) from the Universal site, boosting the area's international connectivity.

"This (theme park) is our 'Plan for Change' in action, bringing investment, bringing opportunity, growth, jobs and, of course, joy to Britain," Starmer said.

Universal has five resorts and parks, in the US states of California and Florida as well as in Singapore, Japan and China, offering rides and attractions based on its movie franchises.

Plans for the new site include a park, featuring several themed lands, a 500-room hotel and a retail, dining and entertainment complex.

Comcast President Mike Cavanagh showed Starmer the plan in London on Tuesday, saying he "could not be more excited" to create a Universal theme park and resort in the heart of the United Kingdom.

Comcast bought a 500-acre former brickworks in Bedfordshire, about 55 miles north of London, in 2023 and had been in talks with the government since last year. It already owns Sky, which is Europe's biggest pay-TV business.

The theme park and resort are subject to planning permission, the government said.