Disney’s unexpected reorganization, announced on Oct. 12, created a new division and spurred questions from investors curious about the new sector of the company, which will handle content dissemination and ad sales.
Kareem Daniel, who worked under Disney CEO Bob Chapek in Disney’s parks division, will lead the company’s Media and Entertainment division. Daniel is a newcomer to Hollywood, having previously been president of consumer products, games and publishing.
Daniel is expected to work closely with Disney’s creative teams as part of his new role. The new division is also expected to consolidate many of Disney’s properties, including Freeform, ESPN, and ABC.
This news comes after former CEO Bob Iger left the position earlier this year, appointing Chapek as his successor. Iger still chairs Disney’s board of directors.
The new division is seen as part of an industry-wide trend to replicate Netflix’s model of success, though some in the industry say that this could cause more trouble for theater owners and smaller studios. And for some longtime advocates of Disney’s pivot to streaming, including analyst Rich Greenfield, the changes are “less transformative than we thought.”