Disney wants to gradually tighten the pace against password free riders on its streaming service.
In June, action will initially only be taken in some countries, said Disney boss Bob Iger on CNBC. The sharing of passwords beyond one household should be prevented across the board in September. The group wants to bring the Disney streaming service into the black by the end of September after losses worth billions.
The streaming market leader Netflix has been cracking down on the sharing of passwords for months – and has gained more subscribers as a result. At the same time, taking action against password free riders involves risks: angry users could simply switch to the competition. However, Disney is hoping for the attractiveness of its streaming offering with films and series about “Star Wars” and the Marvel superheroes. At the same time, the streaming services offer cheaper subscriptions with advertisements.
Iger also wants to improve recommendations at Disney in order to present users with films and series that are interesting to them more prominently. In some countries, more emphasis should be placed on local productions, he said in the CNBC interview. The 73-year-old Iger was actually already retired, but returned to the top management at Disney in November 2022 to replace his hapless successor Bob Chapek.
His current contract runs until the end of 2026. Iger is faced with the challenge of aligning the group with a profitable streaming business while revenues in the American cable TV market are falling and cinema revenues have also recently weakened. He also wants to invest $60 billion in Disney’s theme parks and cruise ships in the coming years, which have become a central source of money for the company.