Disney(NYSE:DIS) CEO Bob Iger commended Netflix’s effective password-sharing initiative during Disney’s second-quarter earnings call, describing Netflix (NASDAQ:NFLX) as “the gold standard” in streaming. Iger shared Disney’s plans to adopt similar technological measures, aiming to bolster its bottom line starting with its own crackdown on password sharing.
Netflix initiated its password-sharing restrictions for U.S. subscribers in May following an announcement in October 2022. This move by Netflix, which remains the only consistently profitable streaming service, has set a benchmark in the industry.
Similarly, Warner Bros. Discovery’s (NASDAQ:WBD) Max streaming service is set to implement restrictions on password sharing, with a comprehensive rollout expected in 2025, as confirmed by Yahoo Finance. Disney’s own measures are set to begin next month in select markets, with a broader launch planned for September. These efforts follow Iger’s earlier statements addressing the substantial number of subscribers sharing accounts, emphasizing a proactive stance against improper password sharing practices.
These initiatives come as Disney seeks to maintain profitability in its streaming operations, a crucial endeavor as its traditional linear TV business faces decline. Although Disney+ and Hulu have achieved profitability for the first time in the company’s fiscal second quarter, Disney anticipates weaker performance in the upcoming quarter and continues to face challenges across other streaming services, including ESPN+. The overall direct-to-consumer segment reported a loss of $18 million, a significant improvement from the $659 million loss in the prior year. Disney remains optimistic about achieving full streaming profitability by the end of this fiscal year.
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