Walt Disney Co. plans to crack down on password sharing for its Disney Plus streaming service in June and is expected to roll it out by September, CEO Bob Iger said.
In an interview with CNBC, Iger said: “We’re launching our first serious attempt at password sharing (in June). It will launch in ‘just a few countries in a few markets’ and will be available to everyone in September.” “The number of subscribers will increase.
Disney’s decision to limit password sharing follows a similar move by rival Netflix, which has blamed recent suppression of subscriber growth. “Netflix is the gold standard of streaming,” Iger admitted. “If we can achieve what they have achieved, it will be great.”
Disney CFO Hugh Johnston confirmed on an earnings call in February that subscribers “suspected of engaging in inappropriate sharing” will see a page inviting them to subscribe by the summer. Subscribers can also add non-family members for an “additional fee,” but pricing details were not disclosed.
“Starting this summer, Disney+ accounts suspected of inappropriate sharing will receive a new feature that allows renters to start their own subscriptions,” Johnston said. Later this year, account holders who want to grant access to someone outside of their family will be able to add that person to their account for an additional fee.
As Disney prepares to implement its password sharing policy, subscribers can expect to receive email notifications detailing changes to the User Agreement. The updated terms will take effect on January 25th for new users and March 14th for existing customers and will not allow subscribers to share their accounts with anyone outside of their primary residence unless the classification allows it. This indicates that it cannot be shared.
Disney’s streaming services, including ESPN Plus, continue to lose money despite growing subscribers. The company expects its streaming platform to become profitable soon, and a crackdown on passwords could further that goal.
“Netflix is the gold standard of streaming,” Iger said in an interview. “They did a great job and took different paths. In fact, I really admire what they’ve done. If only we could have achieved what they achieved. It is wonderful.”
Netflix’s efforts to prevent password sharing are having a huge impact on the company’s business. Due to the suppression of this company, the number of subscribers increased by almost 22 million in the second half of 2023.
The crackdown on password sharing is part of Disney’s larger effort to grow its streaming business and achieve profitability. The company recently released an app that is a combination of Disney Plus and Hulu. It combines content from both services and combines viewing history to provide better recommendations.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.