Disney Consumer Products division separates theatrical & packaged media distribution - High-Def Digest Forums
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Old 09-11-2011, 08:42 AM
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Default Disney Consumer Products division separates theatrical & packaged media distribution

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Bob Chapek to Head Revamped Disney Consumer Products


9 Sep, 2011
By: Erik Gruenwedel


Home entertainment veteran put in charge of updated consumer products division consolidating disc, toy and retail businesses

The Walt Disney Co. Sept. 9 named Robert Chapek president of Disney Consumer Products, reporting directly to CEO Bob Iger.

Chapek, who two years ago was put in charge of Disney’s combined theatrical and home entertainment distribution units, retains control of packaged media, which will now be handled under the consumer products unit.

The new unit consolidates retail and licensing across Disney’s lines of business including Walt Disney Studios, Pixar, Marvel, media networks, interactive media and consumer products.

Theatrical distribution now will be headed by Alan Bergman, president of Walt Disney Studios, who also assumes control of distribution of Disney movies across all TV platforms such as pay-TV.

Chapek has been at the forefront on technological issues for Disney, including the high-definition Blu-ray Disc, in-home 3D movies and the studio’s proprietary KeyChest digital locker platform.

In his previous role as president of Walt Disney Studios Home Entertainment, Chapek played a key role in the commercialization of Disney’s live-action and animated direct-to-video businesses.

“Bob’s vast experience, talent and proven track record will be key to implementing a consolidated approach to retail resulting in a more efficient and effective organization,” Iger said in a statement. “As the retail market becomes more centralized, it is important to provide the consumer with an array of choices in a seamless, coordinated way.”

http://www.homemediamagazine.com/dis...products-25018
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Old 09-11-2011, 09:06 AM
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LA Times:

Disney names Robert Chapek head of consumer products group

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The whole idea is to create more power with the retailers," said media analyst David Miller, managing director of Caris & Co.

Major retailers have been shrinking the shelf space devoted to DVDs and Blu-ray discs as they follow consumers to the Internet. Wal-Mart Stores Inc., which has made faltering attempts to sell music and movies online, is having recent success with its Vudu streaming service.

By combining various parts of its operations, Miller said, Disney is hoping to improve its retail sales and become "a one-stop shop for the Wal-Marts and all the big-box retailers looking for a place to go with all kinds of toys and consumer products."
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Old 09-11-2011, 09:15 AM
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Hollywood Reporter:

Robert Chapek will oversee a unit that will now include challenged areas like video games and DVDs.

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Consumer products under Chapek will expand to include DVDs, Blu-ray Discs and video games, along with the usual toys, clothing and other items.

It wasn’t clear Friday, though, how the changes would impact the way Disney reports its quarterly finances, and the company did hot return requests for comment.

In the most recent quarter, the consumer products segment was a standout, with income up 32 percent on a 13 percent hike in revenue. Interactive media, though, which is where video games are accounted for, grew its losses by 32 percent. And home entertainment, part of the studio entertainment segment, has been dragged down by falling DVD sales.
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Old 09-11-2011, 09:20 AM
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Disney Shifts Strategy for DVD Retail Sales

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Walt Disney Co. said it will combine sales of DVDs with toys, apparel and videogames into one group, naming movie-distribution president Robert Chapek the new president of its consumer-products division.

By combining the sales forces responsible for DVDs and ancillary merchandise, Disney hopes to increase its clout with the big-box retailers such as Wal-Mart Stores Inc. and Target Corp. that dominate both categories.

In a statement, Disney Chief Executive Robert Iger noted the existence of a "more centralized" retail environment, and said Mr. Chapek would be tasked with implementing "a consolidated approach to retail resulting in a more efficient and effective organization."

By tying DVD sales to toys, Disney could try to retain shelf space for the discs, which Wal-Mart for several years has been shrinking. Wal-Mart has instead been emphasizing its online service, Vudu, as a way for its customers to watch movies. Under the Disney reshuffle announced Friday, digital distribution is to remain under the control of the movie studio.

Less than two years ago, Mr. Chapek was put in charge of a new combination of Disney's theatrical and home-video distribution groups. Now, theatrical distribution will again be split off and headed by Disney Studios President Alan Bergman, the company said. Mr. Chapek is 52 years old.

Under Mr. Chapek, Disney Consumer Products will be responsible for selling DVDs from the company's namesake movie studio, as well as Pixar Animation, Marvel Studios and the company's ABC television studio.

Packaged console videogames from the company's interactive media group will also now be sold by the consumer products group. Disney Interactive Media Group will continue to develop and produce its own titles, and to market its online games.

U.S. consumer spending on DVDs was down about 20% in 2010 from 2009, to $7.8 billion, according to IHS Screen Digest. That was 43% below a 2006 peak of $13.7 billion.

Sales of DVDs have been in steep decline for years, but still generate substantial revenues for movie studios. DVD and other physical retail sales represented 35% of aggregate studio revenues in 2009, according to an analysis by IHS, compared with 28% generated by theatrical distribution.

Long-time Disney Consumer Products Chairman Andy Mooney announced earlier this week that he was stepping down to pursue other opportunities
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Old 09-11-2011, 11:17 AM
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Quote:
Originally Posted by mikemorel View Post
Quote:
The whole idea is to create more power with the retailers," said media analyst David Miller, managing director of Caris & Co.

Major retailers have been shrinking the shelf space devoted to DVDs and Blu-ray discs as they follow consumers to the Internet. Wal-Mart Stores Inc., which has made faltering attempts to sell music and movies online, is having recent success with its Vudu streaming service.

By combining various parts of its operations, Miller said, Disney is hoping to improve its retail sales and become "a one-stop shop for the Wal-Marts and all the big-box retailers looking for a place to go with all kinds of toys and consumer products."
Wait I thought people here said this wasn't happening?
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Old 09-11-2011, 11:41 AM
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Let's quote this again:

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Major retailers have been shrinking the shelf space devoted to DVDs and Blu-ray discs as they follow consumers to the Internet.
Wait, what? This is what I have been saying all year. Gee, guess who was right?
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Old 09-11-2011, 02:01 PM
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Looks like a smart decision by Disney to try and slow the erosion of new release OD sell through by working with retailers to stem the decline in shelf space:

Quote:
By tying DVD sales to toys, Disney could try to retain shelf space for the discs, which Wal-Mart for several years has been shrinking. Wal-Mart has instead been emphasizing its online service, Vudu, as a way for its customers to watch movies.
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Old 09-11-2011, 02:35 PM
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Originally Posted by PSound View Post
Looks like a smart decision by Disney to try and slow the erosion of new release OD sell through by working with retailers to stem the decline in shelf space:
We've seen this strategy before (and still do). Packaging discs with collectibles has some success...just depends what it is. Some just rot on shelves until they returned back to the studio. Seems like Disney is going to do whatever it takes to get their products sold when retail space for OD shrinks.
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Old 09-12-2011, 03:25 AM
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Quote:
Originally Posted by GizmoDVD View Post
Let's quote this again:



Wait, what? This is what I have been saying all year. Gee, guess who was right?
No you have been stating that Blu-ray shelf space allocation has been shrinking all year and that is not what that says at all. Blu-ray is increasing while DVD is shrinking.
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Old 09-12-2011, 03:29 AM
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Quote:
Originally Posted by PSound View Post
Looks like a smart decision by Disney to try and slow the erosion of new release OD sell through by working with retailers to stem the decline in shelf space:
It also is a recognition that theatrical releases in this day and age, especially for Disney, generate a lot of additional retail revenue streams at brick and mortar and online retailers besides just packaged media sell through. For example Cars 2 did a lot of associated merchandise sales of branded items that added a lot of retail revenue.

I agree its a smart decision especially for Disney. But it also highlights that Disney is not going to abandon physical media anytime soon as it still generates a huge amount of retail sales even as DVD declines in magnitude.
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