Disney Restructures, Puts Walden & Bergman Over Streaming
Disney's corporate restructuring is taking shape, with Dana Walden and Alan Bergman now assuming oversight of the company's main streaming operations, including Disney+. The move is part of a broader shakeup of its international content strategy and a tighter integration of ESPN with its entertainment portfolio.
This reorganization dismantles the Disney Media and Entertainment Distribution (DMED) division created by former CEO Bob Chapek. The previous structure centralized budget and distribution authority, whereas the new model under CEO Bob Iger returns P&L accountability directly to creative executives to better connect content decisions with financial performance. The strategic shift is yielding financial results in the direct-to-consumer (DTC) segment, which turned profitable after previously losing over $1 billion per quarter. In the third quarter of 2025, the combined Disney+ and Hulu services reported a $346 million profit, adding 2.6 million subscribers to reach a total of 183.3 million. The company is now targeting double-digit operating margins for its streaming businesses by fiscal 2026. To achieve full operational control over its streaming strategy, Disney acquired Comcast's remaining 33% stake in Hulu for a minimum of $8.61 billion. This paved the way for the ongoing integration of Hulu content directly into the Disney+ app for bundle subscribers, a move designed to increase engagement, reduce churn, and create more sophisticated cross-platform advertising opportunities. The restructuring established ESPN as a distinct business segment, which includes ESPN networks and the ESPN+ streaming service. While Iger has dismissed speculation about a spinoff, the sports giant's finances are being more closely integrated with Disney Entertainment to maximize cost efficiencies. ESPN is central to Disney's future streaming ambitions, with a full direct-to-consumer "flagship" service planned for the fall of 2025. In the interim, Disney has launched an ESPN tile within the Disney+ interface and is also part of a joint venture with Fox and Warner Bros. Discovery to launch a new, combined sports streaming service in the fall of 2024. This entire corporate realignment is part of a massive cost-cutting initiative aiming to save $5.5 billion. The plan includes a workforce reduction of approximately 7,000 employees as the company pivots resources more aggressively toward its streaming and digital future.
