Disney vs. Netflix: The Password-Sharing Showdown

April 6, 2024, 9:38 am
CNBC
CNBC
Location: United Kingdom, England, City of London
Employees: 501-1000
Founded date: 1989
Disney Conservation
Disney Conservation
Location: United States, Florida, Orlando
Employees: 51-200
Founded date: 2019
Netflix
Netflix
Location: United States, California
Employees: 1-10
Founded date: 1997
Total raised: $400M
Disney's CEO Bob Iger announced a crackdown on password-sharing, following in the footsteps of Netflix. The move aims to boost subscriber growth and profitability for Disney's streaming service. Iger hinted at double-digit margins and the need for industry consolidation. The decision comes after a proxy battle with activist investors, including Elon Musk supporter Nelson Peltz. Disney's shares rose, signaling investor confidence. The password-sharing crackdown will start in June and expand by September, mirroring Netflix's successful strategy. The battle for streaming dominance intensifies as Disney, Hulu, and Warner Bros. Discovery's Max join the anti-password-sharing trend. The future of streaming lies in exclusive content and user loyalty.