Disney has announced its plan to crack down on password-sharing for Disney+ starting this summer. CEO Bob Iger revealed that the initiative will kick off in June, initially targeting a few select markets before expanding globally by 2024. This move is seen as a crucial step towards making Disney’s streaming business more profitable and competitive in the industry.

Iger acknowledged Netflix as the “gold standard” in the streaming business, citing their successful password-sharing crackdown as a model to emulate. Netflix’s efforts in this area resulted in a significant increase in subscribers, prompting Disney to take similar steps to enhance the financial performance of Disney+ and its other streaming services.

From Losses to Profits: Transforming Disney’s Streaming Business

Upon returning as CEO, Iger recognized the need to shift Disney’s focus from solely expanding subscriber base to achieving profitability. The initial losses incurred by Disney’s streaming business were deemed unsustainable, necessitating a strategic shift towards financial sustainability. Iger’s goal is to turn Disney’s streaming division into a profitable enterprise by the end of this year.

In addition to cracking down on password-sharing, Disney is focusing on improving user engagement and retention through various means. The integration of Hulu content within Disney+ aims to keep viewers on the platform longer by offering a wider array of shows for them to watch. Moreover, Disney plans to enhance its recommendation engines to keep users engaged and interested in the content available, thus increasing platform retention.

Iger highlighted the importance of reducing marketing costs and streamlining customer acquisition efforts to improve the overall profitability of Disney’s streaming services. Additionally, creating programming more strategically, particularly outside the US, is crucial to catering to a global audience and driving growth in international markets. By implementing these initiatives alongside the password-sharing crackdown, Disney aims to strengthen its position in the streaming industry.

Disney’s decision to crack down on password-sharing is part of a larger strategy to transform its streaming business into a profitable and growing entity. By learning from industry leaders like Netflix, focusing on profitability, enhancing user experience, and optimizing cost management, Disney aims to solidify its presence in the competitive streaming landscape. The path to profitability may be challenging, but Disney’s efforts are geared towards long-term success in the ever-evolving world of streaming services.


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