Disney CEO Bob Iger has announced plans to crack down on password-sharing for streaming platform Disney Plus starting June, aiming to make the business profitable and boost subscriber growth.
According to reports, Iger hinted at the necessity of consolidation within the streaming sector, expressing Disney‘s long-term vision of achieving double-digit margins for the business.
The crackdown reflects actions similar to those taken by streaming giant Netflix previously, leading to a significant increase in subscribers following efforts to address password-sharing. Notably, Netflix’s subscribers surged despite price hikes.
Netflix extended its crackdown on password-sharing to many countries last year, surpassing its initial enforcement limited to the United States. In a bid to tackle market saturation and seek fresh revenue streams, the streaming giant imposed limitations on password sharing and introduced an ad-supported subscription tier.
In May last year, Netflix dispatched emails to customers across various countries, reiterating Netflix’s stance on account usage, emphasising that accounts are intended for single household use.
