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Disney Announces Password Sharing Crackdown Starting June

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Disney has said it will crack down on password sharing for its streaming platforms, beginning with trials in select countries in June.

The entertainment giant is aiming for a broader implementation by September. 

Disney CEO Bob Iger discussed the initiative during a CNBC interview following the company's victory against activist investor Nelson Peltz in a contentious proxy battle. 

However, Iger did not specify which countries would be targeted first.

The move to restrict password sharing aligns with Disney's broader strategy to enhance the profitability of Disney+ and Hulu.

It echoes similar efforts by other streaming giants like Netflix and Max. 

This strategy forms part of the company's ambitious plan, as announced by Iger, to achieve a profitable streaming sector by the end of this fiscal year.

After implementing cost-cutting measures, Disney aims to transform its streaming services into profitable and growing entities.

This measure is part of changes to improve Disney's financial performance and stave off criticism from Peltz regarding its management and stock performance.

Notably, Netflix initiated its crackdown on password sharing by limiting account use to a single household, a move aimed at bolstering revenue amid slowing growth. 

Although the policy initially met consumer resistance, it has improved Netflix's financial outcomes.

Other streaming services have attempted to enforce limits on password sharing in a less direct way.

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Disney+, Peacock, and HBO Max (now Max) have contacted users regarding multiple logins from different locations.

The issue of password sharing has gained traction across the streaming industry, with Warner Bros. 

Netflix offers the lowest-priced ad-supported plan at $6.99 a month, and Disney offers a combined Hulu and Disney+ bundle for $9.99 a month.

Since launching Disney+ in 2019 and acquiring majority ownership of Hulu the same year, Disney has grown its subscriber base significantly. 

The company's latest financial reports highlight nearly 150 million Disney+ subscribers and almost 50 million Hulu subscribers. 

Additionally, Disney revealed a collaboration with Fox Corp. and Warner Bros Discovery for a new sports streaming service to launch later this year.

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