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.



Clem Burke, Drummer for Blondie, Dies at 70

 Blondie drummer Clem Burke (L) at the 2021 Tribeca Film Festival. (AFP)
Blondie drummer Clem Burke (L) at the 2021 Tribeca Film Festival. (AFP)
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Clem Burke, Drummer for Blondie, Dies at 70

 Blondie drummer Clem Burke (L) at the 2021 Tribeca Film Festival. (AFP)
Blondie drummer Clem Burke (L) at the 2021 Tribeca Film Festival. (AFP)

Clem Burke, the longtime drummer for the pioneering New Wave band Blondie, has died, the band announced Monday. He was 70 years old.

The band said Burke died after a "private battle with cancer."

"Clem was not just a drummer; he was the heartbeat of Blondie," read the statement on Instagram. "His talent, energy, and passion for music were unmatched, and his contributions to our sound and success are immeasurable."

A native of New Jersey, Burke appeared on all of Blondie's albums, joining in 1975 shortly after Debbie Harry and Chris Stein founded the band behind seminal hits like "Heart of Glass."

Burke was inducted into the Rock and Roll Hall of Fame alongside his bandmates in 2006.

He worked with many other storied artists throughout his career, including Bob Dylan, Iggy Pop, Joan Jett, the Ramones and Eurythmics.

"Clem's influence extended far beyond Blondie," read the band's statement. "His influence and contributions have spanned decades and genres, leaving an indelible mark on every project he was a part of."

"Godspeed, Dr. Burke."