The Walt Disney Company is making some reorganizational changes, including exploring the option of selling more licensed films and TV series to other competitors.
Key Details
- Disney is looking into selling some of its licensed movies and TV shows to other streaming competitors to make more money.
- Disney has an extensive film and television catalog that is typically only available on its streaming services, Disney+ and Hulu, but the platforms haven’t been bringing in as much money as the company would like.
- Executives are looking to redesign the company’s organizational structure by selling some of the film catalog and possibly doing a round of job cuts.
Why it’s news
The Walt Disney Company is making some organizational changes and is considering selling some of its licensed movies and TV shows to other streaming services to cut back on losses brought on its streaming TV services.
Disney’s streaming services have around 250 million subscribers, according to TechCrunch, but due to the amount of money Disney puts into its services, it is not yet profitable. It is estimated that the streaming services will not make a substantial profit until 2024, which brings Disney to look elsewhere to make up for the lost revenue.
Disney has tried to keep all of its original licensed movies and TV shows on its streaming services but is now considering selling some to rivals.
The company reinstated chief executive officer Bob Iger, who is looking to make numerous other changes. He already offered free photos and lower-price tickets to theme-park guests but is looking at other organizational changes.
He is changing how the company decides where and when to release its films. He says he wants to return more decision-making to creative executives, specifically chief financial officer Christine McCarthy, ESPN boss Jimmy Pitaro, Disney studios head Alan Bergman, and Disney’s general entertainment group chair Dana Walden.
Another possible outcome of the reorganization is job cuts. The company has already put a hiring freeze in place, but a round of job cuts could be on the way soon.
It has not been announced if Disney will go through with the selling plan or who the possible rival companies that could be eligible to purchase the movies are TV shows are, but Disney’s annual meeting should happen in the Spring, and an announcement could follow shortly after.
