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After Netflix, Disney CEO Bob Iger plans to crack down on password-sharing staring in June
Disney CEO Bob Iger plans to tackle password-sharing on the streaming platform in June to boost subscriber growth and profitability, aiming for double-digit margins.
Disney CEO Bob Iger has revealed plans to tackle password-sharing on the company's streaming platform, set to commence in June. Iger stressed in a CNBC interview the importance of consolidating the streaming industry, with the initiative aimed at boosting subscriber growth and improving profitability. He articulated aspirations for achieving double-digit margins for the business.
This move mirrors actions taken by streaming giant Netflix, which experienced a substantial surge in subscribers after cracking down on password-sharing, surpassing Wall Street's expectations 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 satisfaction with the resounding endorsement of the board's strategies, particularly concerning CEO succession. Moreover, Iger has also hinted at ongoing plans regarding partnerships for ESPN.
The victory in the proxy battle strengthens Iger's position as Disney endeavors to revitalize its film and television franchises, achieve profitability in its streaming division, and establish 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 address market saturation and explore new revenue avenues, the platform implemented restrictions on password sharing and introduced a subscription option supported by ads.
Emails were sent out to customers in 103 countries and territories, including key markets such as 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 ease the transition, Netflix provides paying customers with the option to add an extra member from outside their household for a supplementary monthly fee. In the United States, this fee amounts to $8 ( ₹660). Members are also given the ability to transfer a person's profile to maintain their viewing history and personalized recommendations, ensuring a seamless experience.
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Business NewsTechnologyNewsAfter Netflix, Disney CEO Bob Iger plans to crack down on password-sharing staring in June
First Published:5 Apr 2024, 10:43 AM IST
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