Future Publishing/Getty Images
Disney also announced its new subscription tier on Tuesday and said new prices for its streaming services would go into effect beginning October 17.
Disney has struggled to profit from streaming operations since it launched in 2019, but that’s finally changed. The company said it made $47 million from its direct-to-consumer streaming businesses, which is the first time those operations have made money.
“This better-than-expected performance, combined with our profitable results at ESPN+, resulted in positive profitability at our combined DTC streaming businesses for the first time and one quarter ahead of our previous guidance of achieving profitability in Q4,” Disney said in a statement.
Disney first announced its plans to crackdown on password-sharing in February. The new policy prohibits users from sharing subscriptions outside their households, and accounts suspected of password-sharing could be terminated.
“We’re looking forward to rolling out this new functionality to improve the overall customer experience and grow our subscriber base,” Johnston said during Disney’s first-quarter earnings call.
Disney’s crackdown follows streaming sites like Netflix, which grew its subscriber base after limiting password-sharing and advertising its cheaper, ad-supported option.
Netflix co-CEO Ted Sarandos said in a January earnings call that the company was “thrilled” with user engagement following its crackdown on password sharing.