The Walt Disney Company will shed 5% of its workforce as part of it's movie distribution restructuring.

Employing around 5000 people, Walt Disney Studios acquired Marvel Studios last year and will begin distributing its releases. Studio chairman Rich Ross wants to make the studio more efficient.

The movie distribution business is facing many challenges from online piracy to illegal physical distribution that is rampant especially in Asia. With illegal downloads zapping profits from blockbusters and independents, there is a real sense of crisis, that requires government regulation.

The real question is what will replace plummeting DVD sales? Just like the music industry faces a slump in CD sales, the film business is feeling the strain. The web is now the primary target for the future of the film industry, but as of yet, there are no rules to regulate it to help prevent piracy.

'Pirates Of The Caribbean 4' starring Johnny Depp is Disney's most recent success at the box office.