Disney’s CEO Bob Iger has announced plans to crack down on password-sharing for Disney+ starting in June. The company’s first efforts will begin in a few countries and markets before expanding to more locations by the end of 2024. This move is seen as a way to boost profitability and subscriber growth, taking inspiration from Netflix’s successful password-sharing crackdown strategy.
Bob Iger acknowledged Netflix as the “gold standard” in the streaming business, citing their successful crackdown on password-sharing as a key driver of subscriber growth. Following in Netflix’s footsteps, Disney is looking to implement a similar strategy to make its streaming business more profitable. The aim is to focus on turning a profit while retaining and growing its subscriber base.
Upon returning as CEO of Disney, Bob Iger recognized the need to make the company’s streaming business profitable. He noted that the initial focus on growing subscribers led to more losses than expected. By reducing costs, improving engagement, and enhancing recommendation engines, Disney aims to achieve profitability and sustainable growth in its streaming services.
To enhance user engagement, Disney has integrated Hulu content within the Disney+ app. This move is expected to keep viewers on the platform longer by offering a wider range of shows and content recommendations. By creating a more compelling user experience, Disney hopes to drive higher retention rates and increase overall platform usage.
In addition to cracking down on password-sharing, Disney plans to make strategic improvements in its streaming business. This includes reducing marketing and customer acquisition costs, creating programming tailored for different markets, and implementing smarter recommendation engines. These initiatives are designed to increase profitability and position Disney’s streaming services for long-term growth.
By combining efforts to crack down on password-sharing with strategic improvements in content, user experience, and cost management, Disney aims to transform its streaming business into a profitable and sustainable venture. With a focus on enhancing engagement and driving user loyalty, Disney is positioning itself for success in an increasingly competitive streaming market.
Leave a Reply