After Netflix, Disney Plus password-sharing crackdown starts in June

Disney CEO Bob Iger announced plans to crack down on password-sharing for the company's streaming service starting in June, aiming to bolster subscriber growth and drive profitability. In an interview with CNBC, Iger highlighted the need for consolidation in the streaming industry and expressed aspirations for achieving double-digit margins for the business.

This move follows in the footsteps of streaming competitor Netflix, whose own crackdown on password-sharing contributed to a significant surge in subscribers, surpassing Wall Street expectations by adding nearly 22 million subscribers in the latter half of 2023.

Iger's remarks came shortly after Disney investors rallied behind him and other company directors in a proxy battle against activist investors, including Nelson Peltz, who criticised Disney's performance in the streaming-television landscape.

"The proxy vote was a resounding endorsement of the board," Iger remarked, highlighting the board's commitment to addressing shareholder concerns, particularly regarding CEO succession.

The victory provides Iger with strengthened leverage as Disney strives to revitalise its film and television franchises, turn its streaming unit profitable, and forge partnerships for ESPN's digital expansion.

In response, Peltz expressed optimism, stating, "If they fulfill their promises, they won't hear from me again," during his own CNBC interview.

Addressing criticism from billionaire Elon Musk, who had previously criticised Disney and other advertisers for withdrawing from social media platform X due to concerns over antisemitic content, Iger brushed off Musk's remarks, stating, "I ignore it."

Disney's shares saw a modest increase of around 0.7% in morning trading, marking a continuation of their strong performance this year, with a 30% rise, making them the top performer on the blue-chip Dow Jones Industrial Average.

Iger also disclosed ongoing discussions regarding strategic partnerships for ESPN during Thursday's interview.