Walt Disney's television business looks set to be getting a makeover as the entertainment giant tries to reinvigorate its share price. Wall Street has been disappointed in the stock, which has greatly underperformed the broader market over the past decade.

The Wall Street Journal reported Thursday that Disney is planning a restructuring of its TV operation that is expected to result in layoffs and the consolidation of divisions, citing people familiar with the matter.

According to the report, senior executives are working out details of the plan, which might not be finalized until next year. One goal of the reorganization is to restructure the business to focus more on streaming customers, rather than on brands created years ago with linear TV in mind.

Disney didn't immediately respond to a Barron's request for comment. The stock was up 0.91% to $102.25 on Friday afternoon.

It isn't clear yet what exactly the restructuring will look like. Hanna Howard, a portfolio manager at Gabelli funds, says she imagines the reported job cuts and reorganization "are working towards a single TV organization that programs for streaming first, with linear networks as distribution windows vs. separate businesses."

"We'd expect much of the savings to be reinvested in DTC [direct-to-consumer streaming] rather than fall to the bottom line," Howard added.

At one point, Disney's legacy TV presence was one of its greatest strengths. However, the growth of streaming and social media have changed the way people consume content. This shift has had a significant financial impact on the entire media industry as legacy companies increase spending to keep up with the likes of Netflix, which has spent heavily on creating original content rather than licensing it from companies with extensive catalogs like Disney.

Disney has worked hard to expand the offerings of its streaming platforms and grow their audiences, but streaming is notoriously less profitable than cable. Nonetheless, making the transition is important because where consumers go, advertisers follow.

New Disney CEO Josh D'Amaro has already made it clear that he plans to change up the business in a streaming dominated world. The company said in its last earnings shareholder letter that "across the next three years we plan to roughly triple the number of local original series on Disney+ to drive new international users to the platform and reduce churn." Disney has also already been cutting jobs throughout the year.

Howard thinks a restructuring of the TV business makes sense and shows that D'Amaro and his team are "willing to move quickly."

The growing need to have a streaming-focused business has put a lot of pressure on fellow entertainment companies as competition ramps up. Paramount Skydance is close to completing its $81 billion purchase of Warner Bros. Discovery as the studios look to combine forces and streamline their businesses. Meanwhile, Netflix stock is down 29% this year as the streaming environment becomes more heavily saturated and subscription fatigue increases churn.

Regardless of the intensifying competitive landscape, Disney investors appear ready for something to change. The stock has risen just 9.9% over the past 10 years compared to the 257% climb of the S&P 500 over the same period.