Disney's Netflix-Like Password Sharing Crackdown Begins This June As Bob Iger Tries To 'Increase Engagement'
Portfolio Pulse from Rounak Jain
Disney (NYSE:DIS) is set to begin its password-sharing crackdown in June, aiming to increase subscriber engagement and achieve profitability in its streaming business by the fiscal year's end. The policy, initially affecting new Disney Plus subscribers in January and extended to existing members in March, will see a global rollout in September. Disney's CFO confirmed that subscribers suspected of password sharing would need to sign up for their own subscriptions this summer. Additionally, Disney's recent merger of the Disney Plus and Hulu apps is part of its strategy to enhance user experience and reduce churn.
April 05, 2024 | 2:58 pm
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Disney's crackdown on password sharing and the merger of Disney Plus and Hulu apps are strategic moves to increase subscriber base, engagement, and streaming business profitability.
Disney's initiative to enforce password-sharing rules and merge streaming apps is a direct effort to enhance subscriber value and reduce churn, which is likely to positively impact its stock price in the short term. The company's focus on increasing profitability in its streaming business by the end of the fiscal year, along with a 50% return to investors in the past six months, indicates strong momentum that could be further bolstered by these initiatives.
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