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As part of a strategic reorganization of Disney into four business segments, the company has combined the management of its direct-to-consumer (D2C) distribution platforms, technology and international operations, it announced March 14.

The reorganization was designed “to capitalize on today’s rapidly changing media landscape and more closely align with” Disney’s “priorities for future growth — including creating high-quality content, technological innovation, global expansion and direct-to-consumer distribution,” the company said in a news release announcing the move.

The four segments under its reorganized structure are the newly-formed Direct-to-Consumer and International business; a combined Parks, Experiences and Consumer Products business; Media Networks; and Studio Entertainment.

The creation of the new D2C and International division comes as Disney is preparing to launch a new ESPN D2C app this spring at $4.99 a month and a separate Disney-branded D2C streaming service in late 2019 that will include Disney, Marvel, Pixar and Lucasfilm movies and shows.

“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,” Robert Iger, Disney CEO and chairman, said in Disney’s reorganization announcement. He added: “With our unparalleled Studio and Media Networks serving as content engines for the Company, we are combining the management of our direct-to-consumer distribution platforms, technology and international operations to deliver the entertainment and sports content consumers around the world want most, with more choice, personalization and convenience than ever before.”

Kevin Mayer, Disney’s chief strategy officer since 2015, was named chairman of the new Direct-to-Consumer and International business segment. Meanwhile, Bob Chapek, chairman of Walt Disney Parks and Resorts, is taking on additional responsibility for all of Disney’s consumer products operations worldwide, including licensing and Disney stores, as chairman of the new Parks, Experiences and Consumer Products business segment. SVP Agnes Chu will move to the Direct-to-Consumer and International segment and will continue to oversee programming for the upcoming Disney-branded streaming service.

The new Direct-to-Consumer and International segment “will serve as a global, multiplatform media, technology and distribution organization for world-class content created by Disney’s Studio Entertainment and Media Networks groups,” the company said in its news release. The new segment will include Disney’s international media businesses and the company’s D2C businesses globally, including the upcoming Disney-branded streaming service, the company’s ownership stake in Hulu, and its coming ESPN+ streaming service, the company said.

BAMTech, led by Michael Paull, is developing both of the company’s new streaming platforms and “will now house all consumer-facing digital technology and products across” Disney as part of the Direct-to-Consumer and International segment, Disney said. The change will provide Disney “not only with increased quality and efficiencies, but also greater consumer insights that will allow for more personalization and substantially improved user experiences,” the company said.

Disney upped its investment in streaming-video tech firm BAMTech in August 2017 to a majority stake and said at the time that it planned to use BAMTech’s technology for the new streaming services. Disney invested an additional $1.6 billion to increase its stake from 33% to 75% and acquired control of the company, Iger said at the time.

As part of the reorganization, management of global ad sales for Disney’s media properties — including ESPN, ABC, Freeform and the Disney Channels – has moved from Media Networks to the new Direct-to-Consumer and International segment, “giving advertisers a one-stop-shop for reaching audiences across all of Disney’s media properties,” including its online and D2C platforms, Disney said. Rita Ferro, president of advertising sales at Disney ABC Television Group, and Edward Erhardt, president of global sales & marketing at ESPN, will now report directly to Mayer, Disney said. Advertising technology operations across Disney’s media properties will also be managed under the new segment, it said.

Also, “to more closely align” with Disney’s D2C initiatives, its program-sales operations headed by Janice Marinelli — including global distribution of film and TV content to the Disney-branded streaming service, Hulu and other third-party platforms and channels, in addition to Movies Anywhere — will be integrated into the Direct-to-Consumer and International business segment and Marinelli will report directly to Mayer, Disney said. Disney’s International Channels — including the international Disney Channels –will also be consolidated into the new business segment, it said. The Disney International team of regional managers across the Europe/Middle East/Africa (EMEA) region, Asia and Latin America will now report to Mayer also, it said.
Mayer has overseen Disney’s key strategic acquisitions of Pixar, Marvel, Lucasfilm and, most recently, its pending deal for 21st Century Fox, Disney pointed out. Prior to becoming SEVP and chief strategy officer, he served as EVP of corporate strategy and business development.

The Disney Media Networks business segment is co-chaired by Ben Sherwood, president of Disney ABC Television Group, and James Pitaro, recently named president of ESPN and previously chairman of Disney Consumer Products and Interactive Media. This segment will “remain virtually the same,” except for the international Disney Channel operations that are moving to the Direct-to-Consumer and International business segment along with management of global advertising sales/technology, the company said.

The Studio Entertainment business segment is led by Alan Horn, chairman of Walt Disney Studios, and also “remains virtually the same,” except for the management of program sales moving to the Direct-to-Consumer and International business segment,” Disney said. The Studio Entertainment segment includes Walt Disney Animation Studios, Disney Live Action, Pixar Animation Studios, Marvel Studios and Lucasfilm, as well as Disney Theatrical Group and Disney Music Group.

Disney doesn’t expect to transition to financial reporting under its new structure until the start of its fiscal year 2019, it said. The first quarter of Disney’s fiscal year 2018 ended Dec. 30.