Walt Disney Co. Reorganizes to Focus on Streaming -- Update

By Imani Moise 

Walt Disney Co. unveiled a strategic reorganization to streamline its direct-to-consumer efforts as the media giant works to position itself to compete in the changing digital landscape.

Effective immediately, the company will consolidate its parks and resorts unit with its consumer products division -- and combine the management of its streaming initiatives to create a new segment dedicated to direct-to-consumer platforms. The media networks and studio entertainment segments will remain.

The company's advertising operations will also move out of the media networks division and be managed by the new direct-to-consumer segment.

Disney has been investing heavily to keep up with the different ways viewers are consuming content. The company plans to launch its ESPN direct-to-consumer offering, the company's first, later this year. The new streaming sources are designed to provide a new source of revenue and reduce its reliance on licensing fees from third-party distributors.

The company expects to begin reporting quarterly results under the new segments by the beginning of next year.

Shares rose 0.4% to $104.10 during afternoon trading. The stock has fallen 3% so far this year while the S&P 500 has risen 3%.

Write to Imani Moise at [e-mail]

(END) Dow Jones Newswires

March 14, 2018 13:45 ET (17:45 GMT)

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