Disney subscribers to be banned from sharing log-in information

DISNEY is to crack down on password sharing as it races to boost subscriber growth and turn a profit from its streaming service.

Bob Iger, the Hollywood giant’s chief executive, said it would prevent Disney+ subscribers in some countries from sharing passwords across different households from June. The policy will be extended to subscribers everywhere in September.

Though the terms of use for Disney+ do not permit non-subscribers to log in using subscribers’ user names and passwords, the company has not been enforcing the rules.

Subscribers will be able to add members outside their households to their subscription for a fee, though Disney has not stated how much this would cost.

The move follows similar action at Netflix that helped the streaming giant sign up nearly 22m subscribers in the second half of 2023.

Disney is hoping it can replicate this success and turn a profit from its streaming business, which continues to post large losses. In an interview with CNBC, Mr Iger said: “Netflix is the gold standard in streaming.

“They’ve done a phenomenal job and a lot of different directions. I actually have very, very high regard for what they’ve accomplished.

“If we can only accomplish what they’ve accomplished, that would be great.”

Mr Iger said Disney was ultimately hoping to record double-digit margins from its streaming business, which includes Hulu.

He also pointed to the need for consolidation in an increasingly crowded streaming market.

The comments came a day after Disney and Mr Iger emerged victorious in a bitter proxy battle with billionaire activist investor Nelson Peltz. He holds a stake in Disney worth roughly $3.5bn (£2.8bn) through his company, Trian Fund Management, and had been pushing for board seats after attacking the company over its performance and other issues, such as succession planning.

Investors voted to elect Mr Iger and Disney’s 11 other nominations as directors to the board.

The win handed Mr Iger a muchneeded boost as he tries to turn around the business’s faltering film franchises, deliver a profit from streaming and find a buyer for a stake in the ESPN sports network.

Mr Iger said the outcome of the vote was a “decisive, true endorsement of the board”.

He added that the company was taking the issue of chief executive succession – major concern for shareholders – “very seriously”.

Pressed on how he would respond to criticism from Elon Musk, who has attacked Disney for pulling advertising from Twitter and backed Mr Peltz’s campaign, Mr Iger retorted: “I ignore it.”