Disney+ and Hulu to crack down on password sharing

Disney+ and Hulu plan to follow Netflix’s lead by cracking down on password sharing starting in June with a wide rollout by September, according to Disney CEO Bob Iger.

CNBC:
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CNBC Transcript: Disney CEO Bob Iger Speaks with CNBC’s David Faber on “Squawk on the Street” Today:
IGER: We just launched, which is a very compelling product, which is Hulu on Disney+ that came out of beta last Friday, actually, and I can tell you that it is doing extremely well. We’ll have more to say about that in our next earnings call. But we feel great about the engagement of those Disney subs who are not getting Hulu who are now watching more programs that were on Hulu including Shogun as a for instance, which is which is a great hit. So we have to increase engagement. We need the technological tools to lower churn, create more stickiness. It’s things like recommendation engines, getting to know our customers better. We need to reduce the cost of marketing, we need to reduce the cost of customer acquisition to get the margins up obviously. I think we have to program more smartly, particularly outside the United States, which is to pick the markets where we could really move the needle and program with really strong local programming. We’ve had some success there. We need more success. Password sharing is something else. In June we’ll be launching our first real foray into password sharing.
FABER: You will?
IGER: Just a few countries in a few markets, but then it will grow significantly with a full rollout in September.
FABER: Cracking down on password sharing, essentially.
IGER: Yes. And all of that, obviously, all the things that I mentioned are components of what will turn this business into a business that we feel really good about.

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