(qlmbusinessnews.com Wed. 8th May, 2024) London, UK —

Disney's Strategy Shift: Password Crackdown to Bolster Subscribers.

Disney is banking on a password crackdown and a slew of sequels as it endeavours to turn its streaming business into a profitable venture.

Amidst the transition away from traditional pay-TV and cinema experiences, Disney reported promising progress towards its goals, with an increase in new subscribers and price adjustments helping to narrow losses in its streaming sector.

The Disney+ platform saw a surge of over six million subscribers globally between January and March, excluding India, now boasting a user base exceeding 117 million. This uptick is pivotal for a service that had experienced sluggish growth in recent months but is deemed indispensable for Disney's future trajectory.

Despite these gains, Disney's shares experienced an over 8% decline as investors remained cautious about its prospects.

Disney disclosed plans for a password crackdown, slated to commence in select regions this summer before rolling out globally in September, anticipating that this initiative will drive subscriber acquisition in the forthcoming months.

Moreover, the company is counting on a series of sequels to lure audiences back to cinemas. Scheduled sequels include follow-ups to hits like Moana, Inside Out, Planet of the Apes, and Deadpool.

Chief Executive Bob Iger, who was brought out of retirement in 2022 to revitalise profits and investor confidence, acknowledged a strategic shift towards relying more on sequels, especially given the challenges faced by some recent original releases.

Disney movie

Iger stated, “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 emphasised the importance of striking a balance between sequels and new content, with a commitment to maintaining quality.

Disney's multifaceted enterprise, spanning news channels, sports-centric ESPN, theme parks, and cruise lines, alongside its film and television studio, has encountered turbulence amidst industry shifts.

Recently, Mr Iger successfully navigated a challenge from investment groups critical of the company's sluggish response to market changes.

While Disney's traditional television revenues continued to decline, with a notable 8% drop in the most recent quarter due to subscriber cancellations and dwindling advertising revenue, the turnaround plan appears to be gaining traction.

Disney+ reported an operating profit of $47m in the first three months of the year, a significant improvement from the $587m loss reported in the same period a year ago. Additionally, operating losses for its streaming businesses, including ESPN+ and Hulu, saw a notable decrease.

The revenue in the experiences division, which encompasses theme parks and cruise lines, witnessed a 10% growth, despite signs of travel moderation following the post-Covid surge.

Overall, Disney reported a 1% increase in revenue, amounting to $22.1bn. However, the company reported an overall loss of $20m, influenced by a $2bn charge linked to its business merger in India, which faced setbacks after losing crucial rights to broadcast certain cricket matches.

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