Disney's CEO Bob Iger is gearing up to tackle the issue of password-sharing on the company's streaming service starting this June. In an interview with CNBC, Iger emphasized the importance of streamlining the streaming industry. The goal is to attract more subscribers and increase profitability, aiming for double-digit margins.
This decision follows in the footsteps of Netflix, which saw a significant boost in subscribers after cracking down on password-sharing. In the latter half of 2023, Netflix exceeded expectations by adding nearly 22 million subscribers.
Iger's announcement comes after a proxy battle with activist investors, including Nelson Peltz, who criticized Disney's performance in streaming television. Reflecting on the outcome of the battle, Iger expressed satisfaction with the board's strategies, especially regarding CEO succession. Additionally, Iger hinted at forthcoming partnerships for ESPN.
The victory in the proxy battle strengthens Iger's position as Disney works to rejuvenate its film and television franchises, achieve profitability in streaming, and expand ESPN digitally.
Last year, Netflix expanded its crackdown on password-sharing to over 100 countries. This effort aimed to combat market saturation and explore new revenue streams. Netflix introduced restrictions on password-sharing and added a subscription option supported by ads.
Emails were sent 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 ease the transition, Netflix offers paying customers the option to add an extra member from outside their household for an additional monthly fee, which amounts to $8 (₹660) in the United States. Members can also transfer a person's profile to maintain their viewing history and personalized recommendations, ensuring a smooth experience.
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