Walt Disney Co (NYSE:DIS, ETR:WDP) is following in the path of rival Nextflix by introducing a crackdown on password sharing to boost profits from its faltering streaming service Disney+.
Restrictions will be imposed in some countries from June with all countries to be covered by September, chief executive Bob Iger announced overnight.
Disney already has the technology in place to block other password sharing but has chosen not to implement it up to now, he said.
In future, subscribers will have to pay for other users to share, though details on potential fees have yet to be released.
Netflix added nearly 22 million subscribers in the second half of 2023 following its crackdown on password sharing, a number that clearly has impressed Iger.
"Netflix is the gold standard in streaming," he told CNBC:
“They’ve done a phenomenal job and in 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.”
Iger is looking to re-establish his authority over the entertainment giant after winning a bruising boardroom battle with veteran activist investor Nelson Peltz.
Trian Fund Management, Peltz’s investment vehicle, has a stake worth US$3.5bn stake in Disney and has been highly critical of both the company’s and Iger’s performance.
However, all of the board appointments in this week's vote were Disney candidates rather than Trian recommendations which Iger said was a “decisive, true endorsement of the board”.