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Following Netflix’s footsteps, Disney CEO Bob Iger announces crackdown on password-sharing beginning in June; Deets
Disney CEO Bob Iger tackles password sharing on the company's streaming platform in a manner similar to Netflix. Users may notice changes beginning in June that are meant to prevent account misuse.
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Disney CEO Bob Iger follows Netflix's lead in cracking down on password-sharing from June
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This initiative is aimed at reducing account misuse and ensuring fair access to content
Disney CEO Bob Iger has announced plans to implement strict measures on the company's streaming platform, which will go into effect in June, in an effort to tighten the reins on password-sharing.
In a CNBC interview, Iger stressed the need to streamline the streaming market, highlighting the goal of the initiative to increase subscriber growth and profitability. He expressed goals for the company to reach double-digit margins.
Following Netflix's lead
Iger's announcement is similar to what streaming giant Netflix did, which saw a sharp increase in subscribers after cracking down on password sharing. In the second half of 2023, Netflix added almost 22 million new members, exceeding Wall Street's predictions. In addition to addressing account misuse concerns, the move aims to emulate Netflix's success.
Iger's announcement came right after an activist investor proxy fight between Disney and Nelson Peltz, who had previously questioned Disney's performance in the streaming television market.
Iger reflected on the proxy vote results and expressed satisfaction with the overwhelming support for the board's plans, especially with regard to CEO succession.
Future plans and partnerships
Additionally, Iger has made reference to future plans concerning collaborations with ESPN, indicating an extensive plan to revive Disney's diverse businesses. The proxy war victory strengthens Iger's hand as Disney tries to bring back its television and film franchises, turn a profit in its streaming business, and establish collaborations for ESPN's digital growth. 
Global implementation
Beyond the US, Netflix started a crackdown against password sharing in over 100 countries last year. In an effort to combat market saturation and look into new revenue streams, the platform put limits on password sharing and unveiled an ad-supported subscription option.
In May 2023, emails were sent to customers in 103 countries and territories, including important markets like the US, UK, France, Germany, Australia, Singapore, Mexico, and Brazil.
Netflix's policy, which states that accounts should only be used within a single household, was reaffirmed in these emails. In order to ease the transition, Netflix allows paying subscribers to add a second household member for an additional monthly charge.
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