Breakdown
- Disney plans to crack down on password sharing starting in June, expanding to all subscribers by September.
- Subscribers suspected of sharing passwords will be prompted to sign up for individual subscriptions or pay additional fees.
- The crackdown aligns with Disney's efforts to streamline its streaming offerings and achieve profitability in its streaming business.
Disney+ password sharing may soon come with a price tag according to Disney CEO, Bob Iger.
He revealed in an interview with CNBC that the company plans to take action against password sharing, starting with a rollout in select markets this June and expanding to all subscribers by September.
In just a few months, Disney+ will implement measures to curb password sharing, a practice that has become increasingly common among subscribers. The company's CEO, Bob Iger, announced the crackdown in an interview with CNBC, with plans to start enforcement in June and expand it to all subscribers by September.
This move follows Disney's recent update to its subscriber agreement, which was implemented in January and went into effect for existing members in March. Similar crackdowns have been seen in the streaming industry, with Netflix leading the charge by charging extra for additional viewers outside the household.
Hugh Johnston, Disney's chief financial officer, confirmed during an earnings call in February that subscribers suspected of improper sharing will be prompted to sign up for their own subscription or pay an additional fee to add members outside their household.
In a move to enhance its streaming business, the timing of Disney's crackdown coincides with the launch of the combined Disney+ and Hulu app, aiming to increase engagement and streamline the viewing experience across both platforms.
Similar to other streaming services like Netflix, Disney+ aims to increase revenue by encouraging individual subscriptions and discouraging password sharing. Subscribers suspected of improper sharing will face prompts to sign up for their own subscription or pay an additional fee to add members outside their household.
Similar to Netflix, Disney+ has realised the value of the revenue they miss out on from password-sharing users. We'll see if this new policy provides profitable results for Disney in the long run, or if it will simply drive away a large segment of existing users.