According to Disney CEO Bob Iger, the company is currently exploring various strategies to deal with the fact that a large number of individuals share their passwords and accounts across Disney+, Hulu, and ESPN+. While he refrained from providing specific figures regarding the extent of this practice, Iger emphasized its significance.
Netflix recently hinted that it may be accommodating approximately 100 million global account borrowers. However, Iger declined to estimate the scale of Disney's own password-sharing user base.
These developments occur at a time when rumors resurface regarding Apple's potential acquisition of Disney, a topic that has long intrigued industry observers.
Disney Focuses on Streaming Profitability
The company has set its sights on addressing a significant issue in the coming year, a move that may have implications for Disney's business during that period. While it is possible that the work may not be completed within the calendar year, it has been established as a top priority with the potential to drive business growth.
"We experienced rapid growth in this business even before fully understanding our pricing strategy," remarked Iger, reflecting on the company's past performance. However, over the past six months, Disney has been actively implementing a pricing strategy aimed at enhancing profitability and transforming the streaming business into a sustainable growth driver.
While Netflix has made significant progress in this regard and garnered praise from Wall Street, it will take time for the impact of their password-sharing crackdown to be fully reflected in their financials. Disney is committed to following a similar path and capitalizing on the opportunities that lie ahead in the streaming landscape.