On Monday, Disney revealed that it will centralize its media businesses into a single organization to further accelerate its direct-to-consumer strategy. They have decided to pursue this goal as content streaming has become the most important aspect of their media business.
Following the announcement, Disney shares jumped over 5% in after-hours trading.
As was reported earlier this month, Disney already laid off a total of 28,000 employees in the company’s park division as Covid has had a tremendous toll on revenues. With this new focus towards the company’s streaming options, it is very possible that a further reduction of staff is on the horizon.
Films such as « Black Widow » and the much-anticipated Pixar film « Soul » have been postponed due to the slump in movie ticket demand. Instead of simply throwing these flicks on the back burner, the movie « Soul » for example, will be released in December on Disney+.
This shift in company focus is effective immediately. For further information, Disney will be holding a virtual investor conference on December 10th.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.