Big news for Disney fans! The Walt Disney Company has announced it will enforce a comprehensive crackdown on password sharing starting next month, aiming to usher in a new era for its streaming services, including Disney+, Hulu, and ESPN. This anticipated move was the primary focus of Disney’s third-quarter earnings call, delivered by Bob Iger and his executive team.
“We started our password-sharing initiative in June,” said CEO Bob Iger during Wednesday’s call. “That kicks in, in earnest, in September.” It’s a bold step for Disney, subsequently echoing the successful strategies previously adopted by other industry giants, such as Netflix.
The driving force behind this policy is profitability and growth. Hugh Johnston, Disney’s CFO, stated that the move is designed to achieve “double-digit margins” in direct-to-consumer operations. Johnston elaborated, “Password sharing is just starting to roll out. That’s also going to be helpful in terms of driving growth. We’ve announced pricing, and we feel good with all of the value that we’re providing to consumers.”
Adding some extra magic, Disney revealed new subscription tiers and announced price updates slated for October 17. The policy prohibits account sharing outside individual households, emphasizing the importance of maintaining a secure and exclusive streaming environment.
Disney reported a landmark achievement: its streaming operations turned a profit for the first time since launching in 2019, raking in $47 million from its direct-to-consumer streaming services. This marks a significant milestone and validate Disney’s strategic decisions and future outlook.
With these sweeping changes on the horizon, it’s clear Disney is aiming for the stars. The adjustments are expected to not only increase profitability but also optimize the overall customer experience. The company hopes this new approach will expand its subscriber base and enhance the streaming landscape for users.
We’d love to hear your thoughts on Disney’s new policy! Will it impact how you watch your favorite shows? Drop a comment below and join the conversation.
Source: Lauren Edmonds
