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.



Jackie Chan, Ralph Macchio Join Martial Arts Forces in 'Karate Kid: Legends' 

Jackie Chan speaks onstage during the 30th Annual Critics Choice Awards, in Santa Monica, California, US, February 7, 2025. (Reuters) 
Jackie Chan speaks onstage during the 30th Annual Critics Choice Awards, in Santa Monica, California, US, February 7, 2025. (Reuters) 
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Jackie Chan, Ralph Macchio Join Martial Arts Forces in 'Karate Kid: Legends' 

Jackie Chan speaks onstage during the 30th Annual Critics Choice Awards, in Santa Monica, California, US, February 7, 2025. (Reuters) 
Jackie Chan speaks onstage during the 30th Annual Critics Choice Awards, in Santa Monica, California, US, February 7, 2025. (Reuters) 

Jackie Chan and Ralph Macchio blend fighting techniques to train a new karate kid in the latest instalment of the martial arts movie franchise.

"Karate Kid: Legends", released this week, stars Ben Wang as Beijing kung fu whizz Li Fong who moves with his mother to New York, where he befriends pizza restaurant owner and retired boxer Victor and his daughter Mia.

When that friendship irks a local karate champion, Li enters a karate tournament and begins training with his old kung fu teacher Mr. Han, played by Chan, and Macchio's Daniel LaRusso, the protagonist of the original 1984 film "The Karate Kid" who learned karate from mentor Mr. Miyagi.

"They presented the concept to me ... connecting the Miyagi to the Han family and how that made sense ... I was like 'That's kind of clever. Okay, so how do we maintain this connective tissue into Li Fong's story that is organic and truthful'," Macchio told Reuters in a joint interview with Chan and Wang.

"That was the challenge at first and figuring that out. Working with Jackie was like, 'Woohoo sign me up - when, where?' And then who's the kid? If we don't love this kid, then you have no movie. So all those, like it happens with 'The Karate Kid' universe, is magic dust that comes down and somehow it continues to resonate. So I'm excited for the next generation version."

The movie is Macchio's fourth "Karate Kid" film playing LaRusso, a character he also portrayed in the "Cobra Kai" television series.

Chan reprises the role of Mr. Han, a character he first played in the 2010 film "The Karate Kid" opposite Jaden Smith.

"Now we've both become a Miyagi," Chan said, referring to both his and Macchio's characters becoming mentors.

"I remember when I saw the first one. Why him (Macchio)? Why not me? ... I want to be 'The Karate Kid'. (Now) We work together."

Wang, 25, said Chan's 2010 film introduced him to the franchise.

"Stepping into it, it's a terrifying thing in a certain way because it's a beloved franchise and ... the fans love it so much, so I want to do right by them," he said. "But it's also a great honor because a lot of people auditioned for this part, so I know how special and lucky it is that I get to do this with the two of them."