The Walt Disney Company has revealed plans to move Consumer Products division from Experiences to Entertainment. The shift aims to create “cohesion across the entire Disney ecosystem and extending the relevance of our franchises for generations,” according to a joint memo from Thomas Mazloum and Alan Bergman.

Consumer Products Reorganized

This is set to begin in October 2026 and allows merchandise and licensing to work more closely with those developing the IP behind it. Currently, Experiences is comprised of consumer products, theme parks, cruise line, and Imagineering.

Disney Consumer Products has generated $63 billion in retail sales in 2025 and includes licensed products, retail, and publishing.

The Q3 earnings report states:

“Additionally, we intend to shift much of our Consumer Products business from our Experiences segment to our Entertainment segment, beginning in Q1 of fiscal 2027. 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. Additionally, we believe this presentation will better reflect the returns our Entertainment segment is generating from the content it produces and make our Entertainment segment more comparable to peer reporting methodologies.”

At this time, there is no word yet on any leadership changes. Lisa Baldzicki was promoted to President of Disney Consumer Products back in March.

This is the second time Disney has seen a major shift this year. Back in March, Disney Games, which includes the lucrative Epic Games partnership, moved from Experiences to Entertainment.

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