For anyone worried about the health of the new direct focus on the consumer of Disney’s business model, worry no more: During a virtual conference Monday, the CEO of Disney Bob chapek touted the success of the recent company reorganization, saying the decision to shift energy towards creating and distributing content for streaming has generated healthy sales figures so far.
“Despite the depth of this change for us, in terms of the way we operate and in particular the way the sector operated, it really had a strong buy-in from our leaders,” Chapek said at the annual conference of communication from Credit Suisse on Monday, according to Tthe hollywood reporter. “Everyone appreciates having more time to do what they do best, given the increase in production that we have. “
In October 2020, Chapek announced the creation of the new Media and Entertainment Distribution group, which was from be responsible for managing the broadcast and sale of advertisements for all Disney content, including on streaming services like Disney +. Part of this strategy, according to Chapek, was to free up time to allow the company’s creative teams to “… focus on what they do best – creating world-class franchise-based content.“
So far, that the strategy seems to be working. Marvel Studios on its own – led by Kevin Feige – has apparently produced enough original content to power a streaming service or a small country on its own, with a roster soon to include future Ms. Marvel, She-Hulk Series, and Armor. Wars, to name a few.
“As you ramp up production and deepen your exploration of Marvel mythology, it doesn’t have to run out,” Chapek told the investor conference. “We have great stories to tell, and we tell great stories.”
For now at least, Chapek has said there are no immediate plans to change the game significantly, including developing an ad-supported version of Disney + – “We are happy with the model we got,” he said.
It’s easy to see why. Very popular original shows have helped the initial sales of the business to stay healthy, and currently, more than 40% of these sales were devoted to streaming and digital, Chapek said. Go forward, the company is going Carry on his pass from traditional linear businesses in streaming and direct-to-consumer models, which makes sense when you consider how rich, this company is just doing development series after series diving deep into the gritty story of the hotel concierge who had a 20 second role in Iron Man 2, or something like that.
“I think this speaks to the rapidly changing nature of this business,” Chapek said. “We are really happy with the start, our sales team did an amazing job. ”