Disney CEO Bob Iger aims to stop password-sharing starting June

Disney CEO Bob Iger has disclosed plans to combat password-sharing on the company's streaming platform, slated to begin in June. Speaking in a CNBC interview, Iger emphasized the need to streamline the streaming industry, aiming to bolster subscriber growth and enhance profitability. He articulated aspirations of achieving double-digit margins for the business.

This initiative mirrors actions taken by streaming behemoth Netflix, which witnessed a significant surge in subscribers after clamping down on password-sharing. Netflix exceeded Wall Street's expectations by adding nearly 22 million subscribers in the latter half of 2023.

Iger's announcement closely follows a proxy battle against Disney's activist investors, including Nelson Peltz, who had criticized Disney's performance in the streaming-television sector. Reflecting on the proxy vote's outcome, Iger expressed satisfaction with the board's strategies, particularly regarding CEO succession. Additionally, Iger hinted at ongoing plans for partnerships related to ESPN.

The victory in the proxy battle solidifies Iger's position as Disney strives to rejuvenate its film and television franchises, achieve profitability in its streaming division, and forge partnerships for ESPN's digital expansion.

Last year, Netflix expanded its crackdown on password-sharing to over 100 countries, extending beyond the United States. In efforts to address market saturation and explore new revenue streams, the platform imposed restrictions on password-sharing and introduced a subscription option supported by ads.

Emails were dispatched to customers in 103 countries and territories, including key markets like the United States, Britain, France, Germany, Australia, Singapore, Mexico, and Brazil, in May 2023. These emails reiterated Netflix's policy that accounts should only be used within a single household.

To facilitate the transition, Netflix offers paying customers the option to add an additional member from outside their household for an additional monthly fee. In the United States, this fee stands at $8 (₹660). Members also retain the ability to transfer a person's profile to preserve their viewing history and personalized recommendations, ensuring a seamless experience.