Disney Moves Consumer Products to Entertainment Segment

Disney's consumer products business will be shifting to the entertainment segment of the company, CEO Josh D'Amaro announced. The move aims to bring the monetization of Disney's intellectual property (IP) through consumer products closer to the studios that create it.

In a letter to shareholders accompanying the earnings results for the June quarter, D'Amaro explained that much of the consumer products business will be moved from the experiences segment to the entertainment segment in fiscal year 2027. This means that sales of merchandise for films like 'Avengers: Doomsday' would fall under entertainment revenue and be reported as part of Disney Entertainment's studios group.

The consumer products business accounted for $1.1 billion in revenue this quarter, with a strong year-over-year growth of 11%. The shift is expected to have strategic and operational benefits by aligning the monetization of IP with the content creation teams.