Disney cuts 200 jobs due to DVD decline
June 7, 2011
The Walt Disney company is cutting 200 jobs from its film studio in response to the worldwide slowing of DVD sales, in a move that is likely to be followed by other studios across Hollywood.
Paramount is also examining the cost structure of its home entertainment division. Philippe Dauman, chief executive of Viacom, which owns Paramount, said last week that the home entertainment revenue stream was “challenged”.
At Disney, Bob Iger, chief executive, has spoken of “secular” change in the film industry, with upheaval the result of waning consumer interest in DVD and growth in new platforms, such as digital distribution.