Disney is joining the ranks of other streaming services, like Netflix, which are cracking down on password sharing, aiming to boost its revenue from this effort starting this summer.
Sources report that the entertainment behemoth has recently revised its subscriber agreement for Disney+ and Hulu, introducing a ban on account sharing for new subscribers effective January 25, and for existing subscribers from March 14 onward.
During the company’s earnings call on February 7, Disney CFO Hugh Johnston hinted at forthcoming measures, indicating that Disney+ account holders would soon encounter new functionalities designed to discourage sharing. These changes are anticipated to roll out in the summer. Additionally, later in the year, account holders may opt to grant access to individuals outside their household—for an extra fee.
Johnston emphasized that while the benefits of these paid-sharing initiatives might not be immediately apparent, Disney is committed to maximizing its audience reach and enhancing the customer experience. The company anticipates seeing notable results in the latter half of 2024.
This move mirrors the strategy of streaming rival Netflix, which initiated a password crackdown in the U.S. last May following earlier implementations in various countries. Despite initial concerns, Netflix reported a significant increase in subscribers during the second quarter of the year, with only a minimal uptick in account cancellations.
Do you think the new Disney+ password-sharing policy will drive more people to subscribe individually, or will it deter potential customers?