Disney CFO Hugh Johnston Says the Disney+ Password Sharing Crackdown Is Working
Disney CFO Hugh Johnston sat down for a question-and-answer session at the UBS Media and Communications Conference today, where he tackled a range of topics, from the future of Disney Parks to the recent integration of ESPN into Disney+.
Looking ahead at the future of Dsiney streaming, the Disney executive painted a bright future. In addition to streamlining its direct-to-consumer business and compiling one of the most robust streaming libraries, Disney has taken steps to increase its margins.
Perhaps most significantly, following in the footsteps of competitors such as Netflix, Disney+ began cracking down on password sharing this summer.
Photo: Deadline
At this time, users trying to access a Disney+ account from outside the primary household are informed that they will need to pay for their own subscription or be added as an “extra member” to the main account.
Johnston Says the Policy Changing Is Paying Dividends
According to Johnston, the policy change is already paying dividends. The password sharing crackdown would improve Disney’s financials “a little bit at the beginning,” the CFO said, before adding that “each quarter should be incrementally stronger.”
Photo: Disney
In addition to its crackdown on password sharing, Disney is continuing to deliver profitability in streaming through its ad-based subscription service tiers.
“Relative to our streaming competitors, we’ve got an awful lot of experience with ad monetization,” Johnston explained.
Finally, there are price increases. So far, Disney has built a yearly price increase into its streaming services, which have traditionally landed in October. According to the Disney CFO, that policy will not change going forward.
Disney’s Streaming Turnaround
Since Bob Iger returned to the Walt Disney Company in November 2022, Disney’s streaming business has gone from losing hundreds of millions of dollars to turning a profit. Now, the company will look to turn streaming into a growth business. By the sound of things, Johnston and Iger believe they are right on track.
