Disney's Consolidation Shake-Up: Streamlining for the Streaming Era

In a strategic move to streamline its television operations, Disney has announced a major restructuring that will see the closure of its ABC Signature production unit and the integration of its scripted teams across ABC and Hulu. This consolidation, which has been in the works for six years, aims to create a more efficient and cohesive content ecosystem that can better serve the evolving needs of the industry and audiences.

Navigating the Changing Landscape: Disney's Consolidation Efforts

The Dissolution of ABC Signature

The ABC Signature production unit, which has been a part of Disney's television landscape for years, is being shut down, with its operations folded into the 20th Television banner under the leadership of 20th TV President Karey Burke. This move is part of a broader effort to streamline Disney's television operations and create a more streamlined and efficient content pipeline.The decision to shutter ABC Signature is not entirely unexpected, as speculation about the potential merger of Disney and Fox's leading TV studios has been circulating since the announcement of the Disney-Fox acquisition in 2017. The integration of ABC Signature into 20th Television is the latest in a series of consolidation efforts that have taken place within the Disney television ecosystem over the past few years.

Combining the Scripted Teams: ABC and Hulu Originals

In a parallel move, the ABC and Hulu Originals scripted drama and comedy teams are being combined under the leadership of ABC/Freeform EVP Simran Sethi, who has been elevated to the position of President, Scripted Programming, Hulu Originals and ABC Entertainment. This consolidation is designed to create a "one-stop shop" for Disney's creative partners, streamlining the development and production process across both linear and streaming platforms.The integration of the scripted teams is a logical step in the convergence of linear and streaming content, as the lines between the two continue to blur. This move aligns with similar efforts undertaken by other media conglomerates, such as NBCUniversal's decision to unify its scripted programming teams across NBC, cable networks, and Peacock.

Executive Departures and Organizational Shifts

As a result of the restructuring, several high-profile executives are departing their roles. Tracy Underwood, the former President of ABC Signature, is transitioning to an overall producing deal with Disney Television Studios, while Erin Wehrenberg, ABC's Head of Comedy, is also leaving the company.The consolidation is also impacting approximately 30 Disney Entertainment Television employees, with the majority of the changes occurring on the studio side, split relatively evenly between ABC Signature and 20th TV. This is in line with the broader industry trend of media companies scrutinizing their operations and seeking opportunities for streamlining and cost-savings.

Strengthening 20th Television's Position

The dissolution of ABC Signature and the integration of its operations into 20th Television solidifies the latter's position as the dominant production unit within the Disney television ecosystem. As the larger and more established of the two studios, 20th TV has been a key driver of Disney's Fox asset acquisition and has delivered a string of successful shows across various platforms, including Hulu, FX/Hulu, Disney+, and Netflix.Under the leadership of Karey Burke, who has been a strategic leader across multiple divisions of the company, 20th TV has experienced a resurgence in recent years, with a slate of critically acclaimed and commercially successful titles. This consolidation further cements 20th TV's position as the primary content engine for Disney's television operations.

Streamlining Business Affairs and Operations

In addition to the changes in the creative teams, the restructuring also includes a shift in the business affairs and operations functions. Josh Sussman, previously the EVP of Business Affairs and Operations at ABC Signature, has been promoted to lead the new combined Disney Entertainment Television (DET) business affairs team, reporting directly to Eric Schrier, the President of Disney Television Studios & Business Operations.This move is designed to create a more streamlined and efficient business affairs function, with Carlos Williams, the EVP of Business Affairs and Operations for 20th Television, Freeform, and Onyx Collective, now reporting to Sussman. This consolidation of the business affairs teams is expected to further optimize the company's operations and decision-making processes.

The Convergence of Linear and Streaming

The combining of the ABC and Hulu Originals scripted teams is a reflection of the ongoing convergence between linear and streaming content. As the role of traditional linear networks evolves, with their content increasingly serving as a first window before transitioning to streaming platforms, the need for a more integrated and coordinated approach to content development and distribution has become increasingly apparent.By unifying the scripted teams under Simran Sethi's leadership, Disney is creating a "one-stop shop" for its creative partners, streamlining the process of bringing content to both linear and streaming audiences. This move aligns with similar efforts undertaken by other media conglomerates, such as NBCUniversal's integration of its scripted programming teams across NBC, cable networks, and Peacock.The elevation of Jordan Helman, Hulu's Head of Scripted Content, to the role of EVP, Drama, Hulu Originals and ABC Entertainment, further underscores the importance of this convergence. Helman's expanded purview, which now includes broadcast drama, highlights the blurring lines between linear and streaming, and the need for a more holistic approach to content strategy and development.

Simran Sethi's Ascent and the Future of ABC and Hulu

Simran Sethi's promotion to President, Scripted Programming, Hulu Originals and ABC Entertainment is a recognition of her exceptional leadership and the strategic importance of the combined scripted teams. During her tenure as the head of ABC's scripted programming team, the network has introduced several hit series, including the critically acclaimed Abbott Elementary and the recent standouts Doctor Odyssey and High Potential.Sethi's role will be crucial in navigating the evolving landscape of content creation and distribution, leveraging the strengths of both linear and streaming platforms to deliver compelling stories to audiences. Her experience in driving initiatives like ABC's Second Cycle model of year-round development and Reverse Windowing strategy, which involves giving Hulu originals a linear run on ABC, will be invaluable in this new, integrated role.As Disney continues to streamline its television operations and adapt to the changing industry dynamics, the consolidation of its creative teams and the elevation of key executives like Sethi and Helman will be instrumental in shaping the future of ABC and Hulu's scripted content offerings. This strategic realignment positions Disney to capitalize on the convergence of linear and streaming, ensuring its content remains at the forefront of the evolving entertainment landscape.