New Delhi: Disney CEO Bob Iger has unveiled plans to address password-sharing on the company’s streaming platform starting in June, aiming to enhance subscriber growth and profitability. In an interview with CNBC, Iger emphasized the significance of streamlining the streaming industry, with the initiative geared towards bolstering subscriber numbers and enhancing financial performance. He expressed ambitions of achieving double-digit margins for the business.
This initiative mirrors actions taken by streaming leader Netflix, which saw a notable increase in subscribers after implementing measures to combat password-sharing, surpassing Wall Street’s projections with the addition of nearly 22 million subscribers in the latter part of 2023. Iger’s announcement closely follows a proxy battle against Disney’s activist investors, including Nelson Peltz, who had raised concerns about Disney’s performance in the streaming television sector. Reflecting on the proxy vote results, Iger expressed contentment with the strong endorsement of the board’s strategies, particularly concerning CEO succession. Additionally, Iger hinted at ongoing plans for partnerships related to ESPN.
The triumph in the proxy battle reinforces Iger’s position as Disney works towards revitalizing its film and television franchises, achieving profitability in its streaming division, and forging partnerships for the digital expansion of ESPN. Last year, Netflix expanded its efforts to curb password-sharing to more than 100 countries, extending beyond the United States. As part of its strategy to tackle market saturation and explore new revenue streams, the platform introduced restrictions on password-sharing and introduced a subscription option supported by advertisements.
In May 2023, emails were dispatched to customers in 103 countries and territories, including major markets such as the United States, Britain, France, Germany, Australia, Singapore, Mexico, and Brazil, reiterating Netflix’s policy that accounts should only be utilized within a single household. To facilitate the transition, Netflix offers paying subscribers the choice to add an additional member from outside their household for an additional monthly fee, priced at $8 (₹660) in the United States. Members are also provided with the capability to transfer a person’s profile to maintain their viewing history and personalized recommendations, ensuring a smooth user experience.
