Disney says password crackdown: As part of its plan to turn a profit from its streaming business, Disney is concentrating on releasing a flood of sequels and cracking down on passwords. The corporation made headway in its objectives, with new subscribers and price hikes helping to reduce losses in its streaming sector, despite pressure from audiences’ growing distaste for traditional pay-TV and movies.
Disney+ added more than six million customers worldwide between January and March, pushing the total to over 117 million (not including India). Since Disney’s subscriber growth has slowed in the past few months, this expansion is quite important to the company.
In an effort to increase the number of people who sign up for Disney+, the company wants to implement a password crackdown in certain areas this summer before rolling it out worldwide in September. Furthermore, the studio is relying on the release of multiple sequels to entice moviegoers. Deadpool, Moana, Inside Out, Planet of the Apes, and a slew of other beloved series all have sequels in the works.
After several box office failures with new films, Disney CEO Bob Iger admitted that the studio is depending more on sequels. Particularly in today’s cutthroat film industry, he said, sequels are valuable due to the audience’s familiarity with the characters and the reduced marketing expenses. But he also emphasized the need to keep sequels and fresh content in check while still focusing on quality.
It would appear that Disney’s turnaround strategy is paying off, even though the traditional television company is facing some challenges. Disney+ earned a $47 million profit in the first quarter, up from a $587 million deficit in the same period last year. Its streaming companies’ operating losses shrank to $18 million from $659 million in the previous year. This includes ESPN+ and Hulu.
Despite a 10% increase in sales, Disney warned investors about potential travel deceleration after the COVID-19 boom. The experiences section of the corporation includes theme parks and cruise lines. Nevertheless, it anticipates a recovery in growth towards the end of the year.
A $2 billion charge associated with a merger plan for its faltering Indian business was a contributing factor to Disney’s $20 million loss, which was despite a 1% increase in revenue to $22.1 billion.
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