Step aside, Netflix – Disney is poised to join the ranks of companies cracking down on password sharing. During a recent earnings call, Disney’s CEO Bob Iger, unveiled the company’s proactive pursuit of solutions to address the issue of account sharing.
Iger also said during the earnings call that Disney will soon revise its subscriber agreements, introducing additional terms and sharing policies later this year. In tandem with this, the company will implement strategies to enhance monetisation by 2024. This move follows Netflix’s recent imposition of an additional fee for account sharing beyond a single household.
When questioned about the extent of password sharing across Disney’s platforms, Iger refrained from disclosing a precise figure but acknowledged its significance. He stressed Disney’s technical capacity to monitor logins and revealed intentions to tackle this matter head-on in 2024.
Moreover, Disney and Hulu unveiled a price hike for their combo plans in the United States. The ad-supported plans for both services will remain as is for now.
While Disney Plus experienced a slight dip in subscribers in the US and Canada, going from 46.3 million to 46 million, its India-based Hotstar service faced a substantial setback. The service witnessed a loss of over 12 million subscribers since April, leaving its tally at 40.4 million. This decline is likely attributable to Disney’s loss of streaming rights for the Indian Premier League (IPL) last year.
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Disney’s other streaming platforms, ESPN Plus and Hulu, saw only marginal fluctuations in their subscriber counts.
After the closing bell, Disney’s stock surged by approximately 3 per cent during after-hours trading. This uptick coincided with Iger’s announcement of a noteworthy $1 billion enhancement in operating income within the company’s streaming sector over the past three quarters. The streaming business is setting its sights on achieving profitability by the year 2024.
In a recent interview with CNBC, Iger divulged his strategic vision for the entertainment conglomerate’s future, which involves reducing expenditure on Marvel and Star Wars productions. He also hinted at the possibility of divesting some cable networks deemed non-essential to Disney, such as ABC, FX, and National Geographic.
Despite initial expectations for a two-year tenure, Iger extended his contract with Disney, committing to lead the company until at least 2026. Since resuming his role as CEO last year, Iger has already initiated significant changes at Disney, including workforce reductions and content adjustments across Hulu and Disney Plus.
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