Succeeding in the stock market requires experience and intuition, but online stock trading with a reliable broker dealer can provide the necessary experience to get the hang of trading. Intuition and foresight are invaluable, and here's some insight into the future of an entertainment powerhouse.
In our previous blog (to link to previously written blog "Analyst Believes the Future of the Content Streaming Industry is Disney's"), we saw how an experienced analyst believed that the Walt Disney Company ($DIS) would rule the content streaming market and outspend the competition in its efforts. Here, we'll check out the major reorganization the company is going through to place itself in a competitive position for the future.
Disney Prepares to Face a Future of Video StreamingDisney has been through some struggles in recent years, particularly in terms of the drastic loss of subscribers at its sports network, ESPN. The popularity of video streaming has also been hard on Disney, and it could no longer bank on its traditional appeal. Steps are being taken, and this reorganization is just what the company needs to strengthen its position and protect it from future threats.
To tackle the threat of video streaming, Disney is launching two streaming services – one, an accompanying service for subscribers of ESPN debuting this spring, and another debuting late in 2019. The latter would stream content from Disney, Marvel, Lucasfilm and Pixar studios. And when Disney completes the acquisition of assets from Twenty-First Century Fox ($FOXA), it would give the company more content sources including the popular Hulu streaming service.
A Major Reorganization of ServicesBeyond all these, Disney is taking further steps. It is combining the Parks and Resorts segment and Consumer Products segment, creating the Parks, Experiences, and Consumer Products segment. It is also adding another segment called Direct-to-Consumer and International. Disney is shuffling many of its businesses between these segments.
The combining of the direct-to-consumer platforms and international operations would help serve the needs of the global sports and entertainment consumers, giving them greater choice and personalization options, according to Bob Iger, Disney's Chairman and CEO. That would help the company improve its popularity in a diverse, global audience. With a single unit taking care of the worldwide programming distribution, Disney believes it can better compete in a streaming-dominated environment. This segment will handle the global platform for distribution of multiplatform media and technology.
Restructuring Just in Time for Fox AcquisitionWith this move, Disney intends to create the right environment and distribution setting for a host of streaming services coming up, according to Motley Fool's Danny Vena. The timing of this restructuring is also ahead of the completion of the Fox acquisition. Vena reckons that with this unification the responsibility for all of Disney's content distribution would come under a single roof.
Ultimately, Disney's moves would facilitate greater streamlining and make it a stronger force in the entertainment, theme park and content streaming segments.
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