How Will Disney CEO Bob Iger's Crackdown on Password-Sharing Impact Streaming Users

Disney CEO Bob Iger has announced plans to address password-sharing on the company's streaming platform starting in June. This contribution aims to increase and enhance subscriber growth and profitability to achieve-digit margins for the business. The move is similar to actions taken by Netflix, which saw a significant increase in subscribers after cracking down on password-sharing.

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This announcement comes after a proxy battle against Disney's activist investors, resulting in a resounding endorsement of the board's strategies and CEO succession plans. Iger also hinted at ongoing partnerships for ESPN.

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In the same lane, Netflix expanded its crackdown on password-sharing to over 100 countries, implementing restrictions and introducing a subscription option supported by ads. This move aims to address market saturation and explore new revenue avenues.

To facilitate the transition, Netflix offers paying customers the option to add an extra member from outside their household for a supplementary monthly fee and the ability to transfer a person's profile to maintain their viewing history and personalized recommendations.