DISNEY CLOSING 2 CHILDREN’S RADIO NETWORKS
Walt Disney Co. will also lay off staff amid a broader restructuring
Radio Disney, which had a hand in launching the careers of such pop stars as Miley Cyrus, Selena Gomez and Demi Lovato, is ending its run after more than two decades.
Walt Disney Co. is shutting down Radio Disney and Radio Disney Country, two children’s radio programming networks, in the first quarter of next year, the Burbank studio said in a statement.
Started in 1996 as a terrestrial radio station, Radio
Disney became a destination for preteens and teenagers, primarily playing pop music and songs popularized by Disney Channel shows.
In a shift, the network began reaching its audience primarily on digital and satellite platforms instead of over the airwaves in 2014, when the company sold 23 local market stations.
Radio Disney in Latin America is a separate operation and will not be affected by the decision, Disney said.
The move comes as the entertainment giant aggressively pivots toward streaming and has been under pressure to cut costs amid the COVID-19 pandemic. The health crisis has hammered Disney, which last month posted a net loss
of $2.8 billion for the 2020 fiscal year and has laid off tens of thousands of workers.
Since the coronavirus hit, Disney has accelerated efforts to focus its business on streaming, with Chief Executive Bob Chapek embarking on a major corporate restructuring to further prioritize creating content for its direct-to-consumer outlets, including Disney+, Hulu and ESPN+.
“The difficult decision to close these two radio networks coincided with Disney’s recently announced structural changes that call for Disney Branded Television to sharpen its focus on increasing production of kids’ and family content for Disney+ and Disney Channels,” the company said in a statement.
“Division leaders also took into account the fast evolving media environment that provides more personalized music choices than ever to a generation of young consumers, and the ongoing public health crisis that continues to affect inperson music events,” it said.
The restructuring will lead to the layoffs of 36 fulland part-time employees, the company said.
Over the last decade, Disney has been making radio station divestitures, selling 23 stations in major markets such as New York, Chicago and Philadelphia
in 2014. The company also sold stations in 2010 and 2013.