Walt Disney Co (NYSE:DIS) designed a strategic organization to accelerate its transition to a "real direct-to-consumer priority company, CEO Bob Chapek said Thursday afternoon on CNBC's "Closing Bell."
Strategic Reorganization: Disney announced a strategic reorganization of its media and entertainment business in conjunction with its earnings report. The company will create three groups (Studios, General Entertainment and Sports) that are each responsible for producing and delivering content across theatrical, linear and streaming channels.
The reorganization comes at a time when the streaming business, Disney+, has performed "far and above anybody's expectations," the CEO said. The same can be said for "every territory" and "every platform" as the company is exceeding projections "every month."
"We just think this reorganization is going to catalyze growth even further," Chapek said.
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COVID Update: Investors shouldn't conclude that Disney's reorganization is a "response" to COVID-19, rather the pandemic may have accelerated the rate at which the transition was made.
It was only a matter of time before the company positioned itself to better listen to what the consumer wants, the CEO said. The consumer is "going to lead" Disney by giving cues on how it spends its money on Disney content.
"What we want to do is make sure that we are going the way that the consumer wants us to go," said Chapek. "Certainly, COVID has impacted all of our traditional distribution businesses but this is even more than reactionary -- this is really progressive. This is looking out with a vision towards where we see the world going."
Disney's stock traded up about 2% to $138.39 at publication time.