Disney is increasing its efforts to address the issue of people sharing passwords for its streaming services in a bid to increase its profits. The entertainment giant, represented by the DIS stock ticker, is gearing up to launch initiatives to curb this practice on its streaming platforms. 

 Yahoo Finance reported that these measures will be implemented in specific markets starting next month, with plans for a worldwide rollout by September. 

This will be similar to Netflix's password-sharing strategy, which was released just last year. As a result, Netflix increased its subscribers in the first quarter of 2024 alone.

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Why Password-Sharing Will No Longer Be Allowed In Disney

According to the Los Angeles Times, Disney's linear TV business reported a decrease in revenue compared to the same period a year earlier. The linear networks reported an income of $2.77 billion, down 8% from the previous year.

Despite the revenue decline in its linear TV business, Disney's overall streaming business is making significant strides and is on track to become profitable. The revenue generated from Disney's streaming business, which includes Disney+, Hulu, and ESPN+, saw a robust 12% increase compared to the previous year, painting an optimistic picture of the company's performance. 

Additionally, the operating loss for the streaming segment decreased, indicating that Disney's investment in streaming is yielding positive results. 

Under the strategic leadership of CEO Bob Iger, Disney is poised to achieve profitability for its combined streaming operations by the fiscal fourth quarter of 2024. The company's crackdown on password-sharing is just the first of many strategic moves to come, instilling confidence in its future prospects.

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