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Disney is banking on a crackdown on password sharing and a slate of sequels to bolster its streaming business. Aiming to turn it profitable amid shifting audience habits away from traditional pay-TV and cinema. With new subscribers and price increases narrowing losses, Disney remains confident in meeting its streaming targets.
Between January and March, Disney+ attracted over six million global subscribers, excluding India, bringing its total to over 117 million. This growth is crucial for the service, which has seen a slowdown in recent months but is integral to Disney’s future success.
Despite these gains, Disney’s share price dropped by more than 8%, reflecting investor caution.
Disney plans to implement a password crackdown starting in some regions this summer, going global by September, to drive new sign-ups. Additionally, a lineup of sequels, including those for Moana. Inside Out, Planet of the Apes, and Deadpool, is expected to draw audiences back to theaters.
CEO Bob Iger, who returned from retirement in 2022 to improve profits. Acknowledges a shift towards relying more on sequels, following recent underperforming releases. He emphasizes the cost-effectiveness and familiarity of sequels in a competitive market.
While sequels are emphasized, Disney aims to strike a balance with new content while reducing output of Marvel films and TV shows to prioritize quality.
Disney’s diverse portfolio, spanning news, sports, theme parks, and cruise lines, in addition to film and television, has faced challenges amidst industry shifts.
Mr. Iger successfully navigated a campaign by investment groups accusing Disney of slow adaptation to industry changes. Underscoring ongoing pressures faced by the entertainment giant.
Haseeb Abdullah
