Disney says password crackdown will increase subscribers

Disney is banking on a password crackdown and spate of sequels as it pushes to make its streaming business profitable.

The company, which is under pressure as audiences move away from traditional pay-TV and cinema, said it was on track to meet its goals after new subscribers and price rises helped to narrow losses in its streaming business.

Disney+ gained more than six million subscribers globally between January and March, excluding India. The streaming service now has more than 117 million subscribers.

The increase is important for a service that has seen growth flag in recent months but is viewed as critical to Disney’s future.

However, Disney’s share price tumbled by more than 8% with investors remaining wary of its prospects.

Disney told investors that a planned password crackdown, which will start in some countries this summer and roll out globally in September, should help drive subscriber sign-ups in the months ahead.

It is also hoping a number of sequels bring fans to the box office.

Disney has follow-ups to its Moana and Inside Out movies as well as sequels for Planet of the Apes and Deadpool.

Chief executive Bob Iger, whom Disney brought out of retirement in 2022 to boost profits and investor confidence, admitted that the company was “swinging back a bit to lean on sequels” after a period in which some of its new films flopped.

“Given the competition in the overall movie market, there’s a lot of value in sequels obviously because they’re known and cost less in terms of marketing,” he said.

Mr Iger added that the company would strike a “balance” with new films, while cutting back on Marvel films and television shows to ensure what is produced is higher quality.

Disney’s sprawling empire, which includes news stations, sports-focused ESPN as well as theme parks and cruise lines beyond its film and television studio, has been buffeted by changes in the entertainment industry.

Mr Iger recently fended off a campaign by investment groups, which had accused the company of being slow to respond.