Disney (DIS) is taking firm action to prevent the sharing of passwords for its streaming service. The company is set to launch a crackdown on password sharing starting in June in selected regions, with broader enforcement scheduled for September. This move is part of Disney’s strategy to ramp up subscriber numbers and drive revenues.
Following in the footsteps of Netflix (NFLX), which witnessed a surge in signups after implementing stringent measures against password sharing in May 2023, Disney’s initiative aligns with recent moves by Warner Bros. Discovery (WBD) to curb unauthorized password sharing for its streaming platform, Max.
Hulu, another streaming service under Disney’s umbrella, initiated restrictions on password sharing outside of households back in March 2024, a move expected to accelerate subscriber growth on the platform. Hulu closed the first quarter of 2023 with 49.7 million paid subscribers, marking an increase from 48.5 million in the prior quarter.
This crackdown on password sharing is anticipated to fuel subscriber growth for Disney in the coming quarters. Analysts project that Disney’s fiscal 2024 paid subscribers on Disney+ will reach 157.13 million, reflecting a 4.61% year-over-year growth. Earnings estimates forecast a rise to $4.62 per share, signifying a 22.87% year-over-year increase.
The Walt Disney Company Price and Consensus
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Disney+ Content Lineup Sparks Optimism
Disney+ has rolled out an array of compelling shows that are poised to captivate audiences and drive growth on the platform. Notable titles include Doctor Who, The Acolyte, and Ironheart, expected to pose stiff competition to streaming giants Warner Bros. Discovery, Netflix, and Amazon Prime.
Shares of Disney, currently a Zacks Rank #3 (Hold) company, have gained 29.7% year-to-date, outpacing the 3.9% growth in the Consumer Discretionary sector. This upward trajectory can be attributed to the introduction of advertisements on its platform, a strategy expected to uphold momentum in the upcoming quarters on the back of its stellar content lineup.
Recently, Disney Branded Television and BBC unveiled the upcoming season of Doctor Who, set to premiere on May 10 on Disney+. The season follows the Fifteenth Doctor and Ruby Sunday on intergalactic adventures, battling enemies and forging alliances.
The Acolyte, a sci-fi series by Leslye Headland for Disney+, set within the Star Wars universe during the High Republic era, will premiere on Jun 4. Ironheart, a miniseries by Chinaka Hodge inspired by the Marvel Comics character and integrated into the Marvel Cinematic Universe, is a collaborative effort between Marvel Studios and Proximity Media, with Hodge serving as the head writer.
Netflix remains a juggernaut in the streaming space, known for its extensive library of original content. With a focus on retaining its market dominance, Netflix is gearing up to unleash a slate of new titles like SCOOP, City Hunter, and What Jennifer Did, positioning the platform to fortify its leading position and attract more subscribers.
Warner Bros. Discovery has unveiled an exciting lineup of entertainment offerings poised to rival Disney. Highly-anticipated movies such as Venom 3 and Red One are expected to draw substantial audiences and drive significant revenue growth.
On the other hand, Amazon Prime has emerged as a strong contender in the competitive streaming arena. To expand its reach and enhance its content portfolio, Amazon Prime is gearing up to launch a range of engaging projects including Música, Fallout, and How to Date Billy Walsh, poised to make a deep impact and bolster its standing in the streaming market.
Zacks Names “Single Best Pick to Double”
From among a multitude of stocks, five Zacks experts have each handpicked a favorite projected to surge by over 100% in the coming months. Director of Research Sheraz Mian has singled out a little-known chemical company that has witnessed a 65% surge over the past year while remaining attractively valued. Fueled by robust demand, soaring 2022 earnings estimates, and $1.5 billion for share repurchases, this company presents an enticing opportunity for retail investors.
This company has the potential to rival or outstrip noteworthy Zacks’ Stocks Set to Double such as Boston Beer Company, surging by +143.0% in slightly over nine months, and NVIDIA, which soared by +175.9% over a one-year period.
