Following the reveal of 2.4 million subscriber losses of its Disney+ service, limited almost entirely to India and parts of Asia, Disney has CEO Bob Iger has announced more details about his plans for a major ‘transformation’ for the studio.
Speaking as part of an earnings call with analysts discussing the company’s first-quarter results, the biggest change will be the creation of a new Disney Entertainment unit that will encompass all TV and film and be led by executives Dana Walden and Alan Bergman.
It officially dismantles Disney Media & Entertainment Distribution and returns greater authority to the studio’s creative teams as it essentially reverts the studio back to its former structure back when Iger was in charge. The changes will bring all of Disney+ and Hulu under the new division.
Effective immediately, the new division will sit alongside Disney’s two other core business segments – ‘ESPN’ and ‘Disney Parks, Experiences and Products’.
Disney is also planning to achieve around $5.5 billion in cost savings – $3 billion of which will come from cutting non-sports content costs while the other $2.5 billion coming from general operating expenses.
The studio will reduce its workforce by 7,000 employees (3.2% of total) as part of those efforts. Despite the content spending cuts, Disney is still expected to spend approximately $30 billion on content this year.
The company continues to expect Disney+ to hit profitability in the fiscal year 2024. Whilst the Bob Chapek regime may have floated the possibility of selling off ESPN, Iger has made it clear ESPN is not for sale under his watch.
Source: Deadline
