Disney's Reorganization Could Make It Look More Like a Tech Company
Disney (NYSE: DIS) is in a world of hurt this year, but there is hope. Theme parks, movie theaters, and sporting events are operating on a limited basis at best. However, the company's direct-to-consumer (DTC) segment -- home of streaming and content-distribution businesses Disney+, Hulu, and ESPN+ -- is booming. So Disney announced on Monday that, effective immediately, it's separating the management of content creation from distribution to build on its success thus far in its tech-forward DTC segment.
Image source: Getty Images.
In early 2018, Disney combined all of its international media assets, technology platforms, and distribution and marketing into the DTC reporting segment. So far, so good. During Disney's fiscal 2020 third quarter, DTC quickly became the company's second-largest unit with $3.97 billion in revenue (after cable and broadcasting, with $6.56 billion). And DTC amassed 101.5 million subscribers worldwide, including 57.5 million Disney+ subscribers less than a year after launch.
Source Fool.com
