Disney+ To Start Cracking Down On Password-Sharing From June

In a move to boost subscribers and profitability, Walt Disney Company CEO Bob Iger announced a crackdown on password-sharing for its streaming service, Disney+, starting in June 2024. The announcement comes after Disney faced pressure from investors and industry trends.

Iger’s CNBC interview follows a successful proxy battle where shareholders backed the company's leadership. He emphasized a focus on revitalizing Disney's core franchises, achieving streaming profitability, and securing strategic partners for ESPN's digital future.

Password-Sharing Crackdown Inspired by Industry Success

The decision to address password-sharing aligns with similar actions taken by streaming competitor Netflix.  Following Netflix's password-sharing restrictions implemented in the second half of 2023, the platform saw a significant subscriber surge of nearly 22 million.

Disney+ Seeks Double-Digit Streaming Margins

Iger outlined Disney's goal of achieving double-digit margins for its streaming business, reflecting a shift towards financial sustainability in the competitive streaming landscape.

Iger Addresses Investor Concerns and Elon Musk's Criticism

The interview also addressed concerns raised by activist investor Nelson Peltz, who advocated for improved performance in the streaming era. Iger expressed the company's commitment to addressing CEO succession, a key shareholder concern.

Regarding criticism from billionaire Elon Musk, who supported Peltz, Iger stated that he chooses to ignore such pronouncements.

Disney Stock on the Rise

Disney's stock price displayed positive momentum, rising 0.7% in morning trade. This year-to-date increase of approximately 30% positions Disney as the top performer on the Dow Jones Industrial Average.

ESPN's Strategic Partnership Discussions Ongoing

Iger additionally confirmed ongoing discussions to secure a strategic partner for ESPN, a crucial step in the network's digital future.