Disney Moves Consumer Products Division Under Studios in Major Corporate Reorganization

The Walt Disney Company is fundamentally reshaping how its characters and stories make the leap from the screen to store shelves. Beginning in October 2026, the entertainment conglomerate will transition the majority of its Disney Consumer Products operations out of the Disney Experiences segment and directly into Disney Entertainment Studios. The move represents a major structural shift designed to align merchandise, retail, and licensing teams directly with the film and television studios that create the company's underlying intellectual property.[1][3]

The reorganization was announced internally via a joint memo from Thomas Mazloum, Chairman of Disney Experiences, and Alan Bergman, Chairman of Disney Entertainment Studios. By bringing consumer products under the Studios umbrella, Disney aims to allow creative development, commerce, and product design to begin simultaneously during the earliest phases of content production.[4][7]

"Disney Consumer Products plays a pivotal role in translating Disney stories into everyday consumer experiences, helping fans connect with the characters, worlds and memories they love," Mazloum and Bergman shared in their statement. They emphasized that the most cohesive consumer experiences occur when storytelling and commerce are integrated from the very beginning, rather than treating merchandise as an afterthought to film production.[1][4]

The structural pivot coincides with a broader leadership transition at the company, as incoming CEO Josh D'Amaro shapes his executive team following his appointment to succeed Robert A. Iger. D'Amaro highlighted the shift during a recent earnings call, noting that the move will take full effect by the first quarter of fiscal 2027 and represents a core part of his strategy moving forward.[2][5]

"We believe this shift will have strategic and operational benefits by bringing the monetization of our IP through consumer products closer to the studios that create that IP," D'Amaro explained to investors. He added that the new reporting structure will more accurately reflect the financial returns generated by the Entertainment segment's content, providing a clearer picture of how individual franchises perform across both box office and retail.[2][5]

The scale of the division being relocated is massive. Disney currently stands as the world's top licensor, having generated an estimated $63 billion in retail sales of licensed consumer products in 2025. The company's merchandise footprint spans more than 100 product categories across over 180 countries, driven heavily by powerhouse franchises like Marvel, Star Wars, Pixar, and Walt Disney Animation.[1][3]

Despite the significant organizational shift, Disney confirmed that no immediate executive changes will accompany the October transition. Lisa Baldzicki will continue to serve as President of Disney Consumer Products, a role she assumed earlier this year after former president Tasia Filippatos transitioned to oversee Disney Parks International.[1][4]

For consumers and fans, the internal corporate restructuring is expected to yield tangible results in the retail market. By housing the merchandise business under Studios leadership, Disney establishes a more direct pipeline from a film's initial concept art to the toys, apparel, and collectibles that eventually hit store shelves, ensuring a higher degree of accuracy and thematic consistency.[3][7]

Industry analysts note that this tighter integration could prevent delays in merchandise availability for breakout characters and allow for more sophisticated, story-driven product lines. The success of recent franchise installments, which drove record merchandise sales alongside massive streaming numbers, has underscored the financial necessity of coordinating content creation with merchandising opportunities from day one.[2][6]

The transition process will unfold gradually over the coming months, with Disney Consumer Products—including its global licensing operations, the Disney Store retail platform, and Disney Publishing Worldwide—officially shifting its reporting lines. As the entertainment landscape continues to evolve, Disney's move signals a doubling down on the synergistic model that has long defined its corporate strategy.[3][7]