United States: Bob Iger, the CEO of Disney, has announced strategies to tackle password-sharing on the company’s streaming platform, slated to launch in June. Speaking in an interview with CNBC, Bob Iger emphasised that this initiative aims to drive subscriber growth and enhance profitability.
This move mirrors actions taken by Netflix, which witnessed a significant surge in subscribers after implementing measures to address password-sharing practices. Netflix surpassed Wall Street’s expectations by adding nearly 22 million subscribers in the latter half of 2023.
Bob Iger’s announcement closely follows a proxy battle against Disney’s investors, including Nelson Peltz, who had previously criticised Disney’s performance in the streaming-television sector. Reflecting on the proxy vote outcome, Bob Iger expressed satisfaction with the resounding endorsement of the board’s strategies, particularly concerning CEO succession.
Additionally, Bob Iger hinted at ongoing plans regarding partnerships for ESPN. The victory in the proxy battle strengthens Bob Iger’s position as Disney endeavours to rejuvenate its film and television franchises, achieve profitability in its streaming division, and establish partnerships for ESPN’s digital expansion.
In a similar move, Netflix expanded its crackdown on password-sharing to over 100 countries. As part of its efforts to address market saturation and explore new revenue avenues, Netflix introduced restrictions on password sharing and introduced a subscription option supported by advertisements.
Meanwhile, Amazon is the only streaming platform globally that permits password sharing, but it imposes unprecedented regulations on certain films, such as offering them for rent a movie for a month. This poses a challenge for users who have already subscribed to Amazon by paying Rs. 299 monthly or subscribed with other plans.
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