crack down on password-sharing, according to CEO Bob Iger. This move aligns with the company's goals of increasing subscriber growth and achieving profitability in the streaming business.
Iger also mentioned the necessity of consolidation within the streaming industry and indicated Disney's aspiration for double-digit margins in the streaming sector. This announcement came during an extensive interview with CNBC.
Netflix's previous crackdown on password-sharing significantly contributed to its impressive addition of nearly 22 million subscribers in the latter half of 2023, surpassing market expectations.
The timing of Iger's interview was notable, occurring just after Disney investors showed their support for him and other company directors in a proxy battle against activist investors, including Nelson Peltz. The victory in the proxy vote bolstered Iger's position during a crucial phase for Disney.
Addressing concerns about CEO succession, Iger emphasized that Disney is taking this issue seriously, reflecting shareholders' key concerns.
Regarding criticisms from billionaire Elon Musk, who supported Peltz and criticized advertisers like Disney, Iger mentioned that he ignores such criticisms.
Disney's stock showed a 0.7 percent increase in morning trade, with a substantial 30 percent rise since the beginning of the year, making it the leading performer on the Dow Jones Industrial Average.
Iger also mentioned ongoing discussions about finding a strategic partner for ESPN to enhance its digital future.
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