CEO Bob Iger announced that Disney will begin restricting password sharing among subscribers starting from June.
The American entertainment giant aims to accelerate the increase in subscriber numbers and make its online streaming division profitable with this move.
Restrictions on password sharing by Disney’s competitor Netflix helped increase its subscriber base by approximately 22 million in the second half of 2023, exceeding Wall Street’s expectations.
Signaling the need for consolidation in the broadcast industry, Iger said in an interview with CNBC that Disney aims to achieve double-digit profit margins in the long term.
Iger’s interview came a day after other investors supported him and company executives in a power struggle against investors, including Nelson Peltz, who claimed that management was underperforming.
Disney is working to revive film and television series, make its online streaming unit profitable, and build the future of sports network ESPN through partnerships.
Iger mentioned that negotiations are ongoing for ESPN’s strategic partner.
