Disney’s largest television network, ESPN, has been losing subscribers as customers drop pay television subscriptions in favour of streaming services.
To counter this, the company has revealed plans to focus on digital streaming services in a bid to keep up with competitors such as Netflix.
As part of the digital restructuring, the company has created a new unit for its streaming video and international businesses. To strengthen its position, from 2019 Disney will pull the first run of its movies from Netflix in order to offer them on its own streaming service. The company’s chief strategy officer, Kevin Mayer, has been named chairman of the new division.
Disney is also currently negotiating to purchase film, television and international businesses from 21st Century Fox. If the deal is approved, Disney will expand its international reach and double it's current shares in the Hulu streaming service to a majority stake of 60 percent.
The new media platform and the movie studio will remain seperate. Disney’s chief executive, Bob Iger said, “we are strategically positioning our businesses for the future, creating a more effective, global framework to serve consumers worldwide, increase growth, and maximize shareholder value.” Following the news, Disney shares rose 0.5 percent to $104.33 in afternoon trading on the New York Stock Exchange.
Source: Reuters, wikipedia
Photo: Disney
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