Disney CEO Bob Iger has unveiled strategies to address password-sharing on the company’s streaming platform, slated to roll out in June. Iger emphasized the significance of consolidating the streaming industry during a CNBC interview, aiming to enhance subscriber growth and bolster profitability. He articulated aspirations of achieving double-digit margins for the business.
This initiative mirrors actions taken by streaming behemoth Netflix, which observed a notable surge in subscribers after clamping down on password-sharing, exceeding Wall Street’s projections by adding nearly 22 million subscribers in the latter half of 2023.
Iger’s announcement closely follows a proxy battle against Disney’s activist investors, including Nelson Peltz, who had criticized Disney’s performance in the streaming-television sector. Reflecting on the outcome of the proxy vote, Iger expressed contentment with the resounding endorsement of the board’s strategies, particularly concerning CEO succession. Furthermore, Iger hinted at ongoing plans regarding partnerships for ESPN.
The triumph in the proxy battle fortifies Iger’s position as Disney aims to rejuvenate its film and television franchises, attain profitability in its streaming division, and forge partnerships for ESPN’s digital expansion.
Last year, Netflix expanded its crackdown on password-sharing to over 100 countries, extending beyond the United States. As part of its efforts to tackle market saturation and explore new revenue streams, the platform enforced restrictions on password-sharing and introduced a subscription option supported by ads.
Emails were dispatched to customers in 103 countries and territories, including key markets like the United States, Britain, France, Germany, Australia, Singapore, Mexico, and Brazil, in May 2023. These emails reiterated Netflix’s policy that accounts should only be used within a single household.
To facilitate the transition, Netflix offers paying customers the option to add an additional member from outside their household for an extra monthly fee. In the United States, this fee totals $8 (₹660). Members also have the capability to transfer a person’s profile to retain their viewing history and personalized recommendations, ensuring a seamless experience.
