Disney CEO says it aims to accelerate its transition to a direct-to-consumer priority company

Thanks so much wealth and bob thanks so much for joining us on the heels of this big news we really appreciate it um give us a sense of the goal of this reorganization and what you think it will accomplish well what we want to do julia is accelerate our transition to a real.

Direct to consumer priority company we believe that we've got the opportunity to build upon the success of disney plus which by almost any measure has been far and above anybody's expectations and really use this to catalyze our growth and increase shareholder wealth.

What does it say about the success of disney plus espn plus and hulu can you give us any sense of new subscriber numbers or what your guidance is for growth of those services well i can't provide any guidance on future numbers but what i can say.

Is that in every territory for every platform our expectations have been exceeded and exceeded every month so we're thrilled with the way it's going and we just think that this reorganization is going to catalyze growth even further well we hope we will get some new disney plus numbers when you report your.

Earnings but um one question we have is you know we've seen the acceleration of a lot of trends due to covid more streaming obviously movie theaters are shut down how much of this change in this reorg is really a response to what is happening because of covet and what has.

Changed over the past six months yeah i would not characterize it as a response to covid i might say that kovit accelerated the rate at which we made this transition but this transition was going to happen anyway because essentially what we want to do is.

Separate out the folks who make our wonderful content based on tremendous franchises from the decision making in terms of where the prioritization is in terms of how it gets commercialized into the marketplace and what we want to do is leave it to a group of folks who can really see objectively across.

All the constituents that we have the various different considerations that we've got and make the optimal decision for the company as opposed to somehow having it be predetermined that a movie is destined for theaters or that a tv show is destined for abc so really what we.

Want to do is provide some level of objectivity and really make it a decision that benefits the overall company and shareholders now what's interesting is this new division which will be run by kareem daniel is going to be responsible for deciding.

What goes to these these businesses that you've had long-term relationships with so that's the tv bundle what's going to go on tv versus digital and what's going to go into theaters versus digital and the digital is really disney plus what message are you sending.

To your partners to the cable distributors into the theaters about how much more important disney plus is than your relationships with them i think what it says is that we're putting the consumer first julia the consumer is actually going to be who's going to make this decision.

They're going to lead us with the way that they make their transactional decisions and right now they're voting with their pocketbooks and they're voting very heavily towards disney plus and so what we want to do is make sure that we're going the way that the consumers want us to go and as you had mentioned.

Certainly covid has you know 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 and how we see that consumers are interacting with.

Disney plus espn plus and hulu and where it's going to go in the future in our international business with star so we're trying to as they say skate to where the puck is going to be tell us specifically about your relationship with the movie theaters you released mulan uh internationally here in the us.

You charged 30 for disney plus subscribers you just announced that you're going to be releasing seoul a pixar movie free for disney plus subscribers pulling it out of theaters how committed are you to the theatrical release model and how different are things going to be.

Now that you've done this reorganization yes as you know we've benefited from a tremendous relationship with theatrical exhibition for many many many years uh as dynamics change in the marketplace though we want to make sure that we're giving consumers who want to go to theaters.

To experience everything that a theatrical release can give them we want to make sure that we continue to give them that option but at the same time there's a lot of consumers that want to experience a movie and the safety comfort and convenience of their own home for whatever reasons they do so.

We want to make sure that again that we put the consumer first and the consumers going to be making the decision in terms of how they consume our media as opposed to some arbitrary decision that we may make from a distribution standpoint so we want to look at ourselves as consumer enablers fewer films in theaters does it mean.

You're going to want to do something more like the day and date releases or a that universally experimented with or the 17-day window that universal agreed on um with amc what does the future of theatrical look like then well i think you're going to hear a lot more on december 10th when we have our.

Next investor conference uh we plan to share a lot more details in terms of how this strategy and how this reorganization then translates into business actions and so i look forward to sharing a lot more on december 10th shepherd smith here thanks for watching.

Cnbc on youtubeDisney CEO says it aims to accelerate its transition to a direct-to-consumer priority company

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