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Disney (DIS) Set to Start Password Sharing Crackdown in Canada
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Disney (DIS - Free Report) is set to start restricting password sharing for Disney+ in Canada. Per a recent report by The Verge, the company has already informed its Canadian Disney+ subscribers through email that the restriction will begin from Nov 1.
Moreover, a new account sharing section in the Canadian Disney+ subscriber agreement notes that Disney may monitor user accounts and failing to comply with the agreement could lead to account limits or termination.
Password sharing has been a headwind for streaming providers including Netflix (NFLX - Free Report) , which has introduced paid sharing in more than 100 countries, which represents more than 80% of its revenue base. Paid sharing boosted its subscriber base in the second quarter of 2023.
Meanwhile, Disney CEO Bob Iger on the fiscal third-quarter conference call stated that it is exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family.
In terms of monetization, early this month, Disney launched an ad-free bundled subscription plan featuring Disney+ and Hulu in the United States. Moreover, it is set to launch ad-supported Disney+ subscription offerings in Canada and select markets across Europe, beginning Nov 1.
At the end of the fiscal third quarter, Disney had signed up 3.3 million subscribers to the ad-supported Disney+ option. Moreover, since its inception, 40% of new Disney+ subscribers have selected an ad-supported product.
Disney is also raising the price for Disney+ ad-free to $13.99 per month, up from $10.99 per month. Hulu ad-free will be available from $17.99 per month, up from $14.99 per month.
Disney Prospects Suffer From Stiff Competition
Disney’s password-sharing crackdown initiative is expected to boost its subscriber base. Disney+ has been benefiting from a strong content portfolio despite stiff competition from the likes of Netflix, Amazon (AMZN - Free Report) and Comcast (CMCSA - Free Report) .
Disney shares have lost 7.8% year to date, underperforming Netflix, Amazon and Comcast, which have returned 27.8%, 28.4% and 50.1%, respectively.
However, a revival in the Parks, Experiences and Products segment bodes well for the company despite stiff competition from Comcast.
Disney is planning to expand investment in its Parks, Experiences and Products segment, which accounted for 37.3% of total revenues in third-quarter fiscal 2023. Over the next decade, it plans to double its capital expenditure to nearly $60 billion.
Upcoming attractions include the new Frozen-themed lands in Hong Kong Disneyland, Walt Disney Studios Park in Paris and Tokyo Disney Resort, as well as a Zootopia-themed land at Shanghai Disney Resort.
Over the next couple of years, Disney will roughly double the worldwide capacity of its cruise line, adding two ships in fiscal 2025 and another in 2026. It will introduce Singapore as a new homeport beginning 2025, thereby expanding its reach in the Asia-Pacific region.
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Disney (DIS) Set to Start Password Sharing Crackdown in Canada
Disney (DIS - Free Report) is set to start restricting password sharing for Disney+ in Canada. Per a recent report by The Verge, the company has already informed its Canadian Disney+ subscribers through email that the restriction will begin from Nov 1.
Moreover, a new account sharing section in the Canadian Disney+ subscriber agreement notes that Disney may monitor user accounts and failing to comply with the agreement could lead to account limits or termination.
Password sharing has been a headwind for streaming providers including Netflix (NFLX - Free Report) , which has introduced paid sharing in more than 100 countries, which represents more than 80% of its revenue base. Paid sharing boosted its subscriber base in the second quarter of 2023.
Meanwhile, Disney CEO Bob Iger on the fiscal third-quarter conference call stated that it is exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family.
In terms of monetization, early this month, Disney launched an ad-free bundled subscription plan featuring Disney+ and Hulu in the United States. Moreover, it is set to launch ad-supported Disney+ subscription offerings in Canada and select markets across Europe, beginning Nov 1.
The Walt Disney Company Price and Consensus
The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote
At the end of the fiscal third quarter, Disney had signed up 3.3 million subscribers to the ad-supported Disney+ option. Moreover, since its inception, 40% of new Disney+ subscribers have selected an ad-supported product.
Disney is also raising the price for Disney+ ad-free to $13.99 per month, up from $10.99 per month. Hulu ad-free will be available from $17.99 per month, up from $14.99 per month.
Disney Prospects Suffer From Stiff Competition
Disney’s password-sharing crackdown initiative is expected to boost its subscriber base. Disney+ has been benefiting from a strong content portfolio despite stiff competition from the likes of Netflix, Amazon (AMZN - Free Report) and Comcast (CMCSA - Free Report) .
Disney shares have lost 7.8% year to date, underperforming Netflix, Amazon and Comcast, which have returned 27.8%, 28.4% and 50.1%, respectively.
However, a revival in the Parks, Experiences and Products segment bodes well for the company despite stiff competition from Comcast.
Disney is planning to expand investment in its Parks, Experiences and Products segment, which accounted for 37.3% of total revenues in third-quarter fiscal 2023. Over the next decade, it plans to double its capital expenditure to nearly $60 billion.
This Zacks Rank #3 (Hold) company now plans to spend on expanding and enhancing domestic and international parks and cruise line capacity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming attractions include the new Frozen-themed lands in Hong Kong Disneyland, Walt Disney Studios Park in Paris and Tokyo Disney Resort, as well as a Zootopia-themed land at Shanghai Disney Resort.
Over the next couple of years, Disney will roughly double the worldwide capacity of its cruise line, adding two ships in fiscal 2025 and another in 2026. It will introduce Singapore as a new homeport beginning 2025, thereby expanding its reach in the Asia-Pacific region.