Disney to follow in the footsteps of Netflix to crack down on password-sharing

Disney CEO Bob Iger announced plans to crack down on password-sharing for the company's streaming service starting in June, aiming to bolster subscriber growth and drive profitability. This move follows in the footsteps of streaming competitor Netflix, whose own crackdown on password-sharing contributed to a significant surge in subscribers. Iger highlighted the need for consolidation in the streaming industry and expressed aspirations for achieving double-digit margins for the business.

After the password crackdown, Netflix happened to surpass Wall Street expectations by adding nearly 22 million subscribers in the latter half of 2023.

Iger's remarks came shortly after Disney investors rallied behind him and other company directors in a proxy battle against activist investors, including Nelson Peltz, who criticised Disney's performance in the streaming-television landscape.

Highlighting the board's commitment to addressing shareholder concerns, particularly regarding CEO succession, Iger remarked, "The proxy vote was a resounding endorsement of the board."

The victory provides Iger with strengthened leverage as Disney strives to revitalise its film and television franchises, turn its streaming unit profitable, while forging partnerships for ESPN's digital expansion. Iger disclosed ongoing discussions regarding strategic partnerships for ESPN.

Disney's shares saw a modest increase of around 0.7% in the morning today, marking a continuation of their strong performance this year. With a 30% rise, Disney emerged as the top performer on the blue-chip Dow Jones Industrial Average.