Walt Disney could limit account sharing on its streaming service, mimicking Netflix.
“We are actively exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family,” Chief Executive Officer Bob Iger said in a statement late Wednesday afternoon. there is,” he said.
He said Disney plans to begin updating subscriber agreements later this year to include “additional terms” for sharing. In 2024, Iger said, “tactics to drive monetization” will be introduced.
He hinted at the possibility at the company’s third-quarter earnings call this afternoon.
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Iger didn’t give numbers, but said sharing passwords on Disney’s streaming service was “important.”
“Of course what we don’t know is how much password sharing will lead to growth and subscriptions by basically eliminating password sharing as we tackle this problem,” he told analysts and investors. said. “Of course, I believe there are some possibilities, but I’m not guessing.”
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Streaming competitor Netflix announced to Netflix users in the United States and many other countries in May that accounts should be “shared by people who live together in the same household.” started to apply.
That would require anyone outside the subscriber’s home to get their own account or become an “additional member” of an account they were already using, which Netflix used to do with password sharing1. It meant cutting 100 million households.
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The company counted about 238.39 million paying Netflix subscribers worldwide in July, posting a net gain of 5.89 million during a broad crackdown during the quarter.
Iger said on Wednesday that Disney officials “certainly confirmed this.” [addressing account sharing] We believe there is a real opportunity here to grow our business.
The direct-to-consumer segment, which includes Disney+, Hulu and ESPN+ streaming services, brought in $5.5 billion in revenue in the third quarter, up 9% year-over-year. Operating loss decreased 52% to $512 million.
The total number of paying subscribers for the three streaming services was 219.6 million.
Total Disney+ subscribers decreased from the previous quarter to 146.1 million in the third quarter. Hulu’s paying subscribers increased slightly to 48.3 million, according to the company, while ESPN+ fell from 25.3 million to 25.2 million.
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Iger said the entertainment giant aims to make Disney’s direct-to-consumer business profitable by the end of fiscal 2024.
Overall, Disney reported revenues from continuing operations of $22.3 billion and a net loss of $460 million. In his same three-month period last year, Disney made his $21.5 billion in revenue, bringing in $1.4 billion in profits.