disney is restructuring before letting service loose
In preparation for its drive into the OTT market, Disney has announced a reorganization of the company into four divisions, which will include a newly created direct-to-consumer segment to house the company’s portfolio of streaming services.
Disney has appointed Kevin Mayer to lead the direct-to-consumer division, which will encompass ESPN Plus, expected to launch in 2018, and the Disney-branded streaming service slated for a late-2019 launch. Additionally, Mayer, who has served as Disney’s chief strategy officer since 2015, will oversee BAMTech, the streaming-infrastructure company founded by Major League Baseball in which Disney owns a majority stake.
Disney first announced it would be launching a Disney-branded streaming service in August of 2017, while simultaneously announcing it would be pulling its movies off of Netflix in the US. The conglomerate hopes its arsenal of movies and TV shows will be enough to persuade US consumers to pay for a stand-alone service. The price of the upcoming service has not yet been revealed, but if it’s anything like DisneyLife, the streaming service the company launched in Ireland, the price will be around $8.
Despite the reorganization, Disney Media Networks and the studio businesses will remain “virtually the same” according to the company.