Entertainment giant Walt Disney recently announced a restructure to increase the focus on the direct-to-consumer video streaming businesses. The market welcomed the announcement and while the move has likely been accelerated by the pandemic, we view the strategic direction to be sound – one that bolsters the investment case, despite the havoc wreaked by COVID-19 on some of the company’s business units.

A major reorganisation of the business will make its Disney+ and other direct-to-consumer streaming platforms the key focus. Content groups, including studios, will make content for the video streaming services, as their first priority.