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Disney Takes Aim at Password Sharing to Boost Subscriber Growth

Disney DIS is set to implement stringent measures to curb password sharing for its streaming service. Starting in June in select regions, the company is poised to intensify its crackdown on password sharing more broadly by September. This strategic move is in line with Disney’s ongoing initiative to ramp up subscription numbers and overall revenues.

Echoing Netflix NFLX, which experienced a surge in sign-ups post tightening password-sharing policies in May 2023, Warner Bros. Discovery WBD also recently announced plans to clamp down on password sharing for its streaming service, Max, this year. These decisions closely follow similar actions taken by industry competitors like Netflix and Disney’s Hulu.

The increase in password-sharing restrictions implemented by Hulu, another streaming service under the Disney umbrella, in March 2024 outside of households is anticipated to drive growth in subscriber numbers for the platform. Notably, Hulu concluded the first quarter of 2023 with 49.7 million paid subscribers, up from the previous quarter’s 48.5 million.

This development is expected to propel the company’s subscriber base in the forthcoming quarters. The Zacks Consensus Estimate for DIS’ fiscal 2024 paid subscribers on Disney+ stands at 157.13 million, reflecting a 4.61% year-over-year growth. Furthermore, the consensus estimate for earnings is at $4.62 per share, signaling a significant 22.87% year-over-year growth.

Disney’s Content Strategy to Drive Growth

 

Disney+ has unveiled a captivating lineup of shows, poised to captivate audiences and bolster the platform’s appeal. Standout series include Doctor Who, The Acolyte, and Ironheart, expected to offer stiff competition to streaming behemoths like Warner Bros. Discovery, Netflix, and Amazon AMZN Prime.

Shares of this Zacks Rank #3 (Hold) entity have surged 29.7% year to date, outperforming the Consumer Discretionary sector’s modest 3.9% growth. This remarkable performance has been fueled by the introduction of advertisements on its platform. The trend is anticipated to persist in the upcoming quarters, supported by its compelling content slate.

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Disney Branded Television and BBC have jointly announced the launch of the upcoming season of Doctor Who on May 10, exclusively on Disney+. The season features the Fifteenth Doctor and Ruby Sunday embarking on thrilling adventures across time and space, battling adversaries and forging alliances.

The Acolyte, an upcoming sci-fi series created by Leslye Headland for Disney+, is set in the Star Wars universe during the High Republic era. It portrays Jedi delving into a series of crimes preceding the main film events and is scheduled for release on June 4.

Ironheart, a fresh miniseries by Chinaka Hodge for Disney+, draws inspiration from the Marvel Comics character and unfolds within the Marvel Cinematic Universe. Collaborating with Marvel Studios and Proximity Media, Hodge spearheads the project as the lead writer.

When it comes to dominating the streaming landscape, Netflix emerges as a formidable player renowned for its extensive catalog of original content. Renowned for its widespread popularity with viewers worldwide, NFLX is gearing up to launch a slew of titles, such as SCOOP, City Hunter, and What Jennifer Did. These forthcoming releases are poised to bolster Netflix’s premier position in the industry and attract more subscribers.

On the other hand, Warner Bros. Discovery has unveiled an exciting lineup of entertainment offerings set to pose a significant challenge to Disney. WBD is gearing up to release several blockbuster movies, including the highly anticipated Venom 3 and Red One, expected to draw massive audiences and substantially contribute to the company’s revenues.

Concurrently, Amazon Prime has emerged as a formidable contender in the fiercely competitive online streaming landscape. To expand its viewership and enrich its offerings, the platform is gearing up to introduce a varied selection of compelling projects. Noteworthy productions in the pipeline include Música, Fallout, and How to Date Billy Walsh, promising to make a significant impact by attracting a considerable audience and enhancing Amazon Prime’s standing in the streaming market.