Disney CEO Bob Iger Reveals Rollout Plan
Disney’s forthcoming crackdown on password-sharing for Disney+ is slated to commence this summer, with CEO Bob Iger announcing that the initiative will kick off in June. The enforcement will initially target select countries and markets before expanding to a broader global scale by the end of 2024.
“In June, we’ll be launching our first real foray into password-sharing [crackdown], starting in just a few countries and markets, but then it will grow significantly with a full rollout in September,” Iger stated.
Upon implementation, Disney+ subscribers will have the option to pay an additional fee to extend access to individuals beyond their household, mirroring the model adopted by Netflix. Netflix previously undertook a similar endeavor, initiating its password-sharing crackdown in select markets before extending it to the US and other regions. Iger acknowledged Netflix as the “gold standard” in streaming, indicating Disney’s emulation of Netflix’s strategies.
Netflix’s crackdown on password-sharing notably contributed to substantial subscriber growth for the platform. Disney aims to replicate this success to enhance the profitability and expansion of its streaming business.
Iger revealed that Disney initially incurred higher losses than anticipated during the Disney+ rollout due to prioritizing subscriber growth over profitability. Upon reassuming his role as CEO, Iger inherited streaming losses amounting to approximately $4 billion annually, a situation deemed unsustainable and unacceptable.
Striving to make Disney’s streaming business profitable, Iger outlined plans to achieve profitability later this year. He noted a significant improvement in streaming losses for the latest quarter, indicating progress toward profitability.
Following the profitability milestone, Iger emphasized the objective of fostering a growing streaming business. Strategies include enhancing engagement through initiatives such as integrating Hulu content within Disney+, optimizing recommendation engines to prolong user engagement, reducing marketing costs, and developing programming more strategically, especially for international markets.
Iger emphasized that these measures, coupled with the crackdown on password-sharing, are pivotal in propelling Disney’s streaming services toward profitability and sustained growth.