Chief Executive Officer Bob Iger said Thursday that Walt Disney’s streaming service aims to drive subscriber growth and increase business profitability. The company announced that it will start cracking down on password sharing starting in June.
Iger also hinted at the need for consolidation in the streaming industry in a wide-ranging interview with CNBC, saying Disney “ultimately” aims for double-digit profits from the business.
Streaming rival Netflix’s password-sharing crackdown helped it add nearly 22 million subscribers in the second half of 2023, crushing Wall Street’s expectations.
The interview comes just a day after Disney investors backed Iger and other board members, defeating a campaign by activist investors like Nelson Peltz who argued that Disney was underperforming in the streaming TV era. It was held in
“The proxy vote was a decisive and genuine endorsement of the board,” he said, noting that the company takes CEO succession issues, a key concern for shareholders, “very seriously.” did.
The win strengthened Iger’s hand at a critical time. Disney is looking to find a partner to reinvigorate its film and TV franchises, make its streaming division more profitable and build the digital future of its sports network ESPN.
Meanwhile, Peltz said in an interview with CNBC minutes after Iger’s remarks that he hopes the Disney CEO keeps his word.
“If they did that, you’d never hear from me again,” Peltz said.
Mr. Iger also supported Mr. Peltz, a billionaire who in November slammed advertisers such as Disney, which fled social media platform X over concerns about anti-Semitic content, in a profanity-laced tirade. He also mentioned criticism from Elon Musk.
Iger said he would “ignore” Musk’s criticism.
Disney stock rose about 0.7% in morning trading. The company is up about 30% so far this year, making it the top performer on the blue-chip Dow Jones Industrial Average.
Iger said Thursday that negotiations are underway regarding a strategic partner for ESPN.
