If there was any question that Disney+ is the center of Disney’s media empire, the company took away all doubt on Monday.
« This is further proof that the direct to consumer model is not only well received, but more critical than ever to Disney’s future, » said Trip Miller, a Disney investor and managing partner at hedge fund Gullane Capital Partners. « These moves will not only result in higher quality content, and focused distribution, but allow the company to streamline corporate complexity and hopefully lower expenses. » Miller also said that this move will allow Disney to further monetize in demand content and possibly « make up for revenue and profit lost in other divisions this year. » Under the reorganization, Disney will create a new Media and Entertainment Distribution group that will be in charge of monetizing content via distribution and ad sales. The group will also oversee the operations of the company’s streaming services like Disney+, Hulu and ESPN+.
