Disney Restructures Consumer Products Operations

Disney restructures its business as digital disruption shakes up the TV and film industry

Disney's parks and resorts will now share a unit with the company's consumer products business

With an ESPN subscription streaming service set to launch any day and a Disney streaming service due next year, Disney is consolidating its direct-to-consumer and global businesses into a newly formed segment.

It will also include BAMTech, which the company acquired from Major League Baseball a year ago, as well as the soon-to-launch ESPN+ streaming service, the Disney-Branded streaming service set to launch in 2019, and the company's stake in Hulu.

Bob Chapek, chairman of parks and resorts, takes on the additional responsibilities of overseeing the consumer products operations that include the licensing business across toys, apparel, home goods, and digital games and apps; Disney store locations around the world; and the shopDisney e-commerce platform.

Chief Strategy Officer Kevin Mayer will be chairman of that segment and report to CEO Bob Iger.

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Disney's travel and leisure businesses include six resort destinations in the U.S., Europe and Asia; Disney Cruise Line; Disney Vacation Club; and the Adventures by Disney tour operator.

Disney's business segments going forward are the newly formed direct-to-consumer and global; the combined parks, experiences and consumer products; media networks; and studio entertainment.

The reorganization also created a direct-to-consumer and worldwide division, a media networks division and a studio entertainment segment.

The other two divisions will remain much as they were. The new reporting structure will become effective by the start of fiscal 2019, according to a release.

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