Disney has set its sights on cracking down on password-sharing for its streaming service Disney+. CEO Bob Iger revealed that this initiative will kick off in June, starting small in a few select regions before expanding to more countries by the end of 2024. This move is aimed at increasing revenue and ensuring that those accessing the platform are paying for their subscriptions. The strategy is reminiscent of Netflix, which implemented a similar crackdown in limited markets before rolling it out globally. By following Netflix’s lead, Disney hopes to replicate the subscriber growth that Netflix experienced as a result of its password-sharing crackdown.
When Bob Iger returned to Disney as CEO, he was faced with the challenge of addressing the streaming service’s losses, which were around $4 billion per year. Iger recognized that this level of loss was unsustainable and set out to make Disney’s streaming business profitable. The focus shifted from simply growing the subscriber base to prioritizing profitability. In the latest quarter, Disney’s streaming business showed signs of improvement, with losses reduced to around $130 million. This positive trend is a step in the right direction towards achieving profitability by the end of the year.
To further drive profitability and growth, Disney is looking to enhance the streaming experience for its users. One approach is to integrate Hulu content within the Disney+ app to increase engagement and encourage users to stay on the platform longer. By providing a wider range of shows and improving recommendation algorithms, Disney aims to keep viewers engaged and satisfied. Additionally, the company plans to optimize its marketing strategies and reduce customer acquisition costs. With a focus on creating high-quality programming and expanding its reach beyond the United States, Disney is laying the groundwork for a more profitable and sustainable streaming business.
Overall, Disney’s strategy for the future of Disney+ involves a multi-faceted approach that includes cracking down on password-sharing, improving profitability, enhancing the user experience, and expanding its global footprint. By leveraging lessons from industry leaders like Netflix and implementing innovative tactics, Disney is positioning itself for success in the competitive streaming landscape. As Bob Iger and his team work towards their goal of a profitable and growing streaming business, the future looks promising for Disney+ and its associated services.
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