Disney Plus is set to begin cracking down on password-sharing in June, with a full rollout of the new policies expected in September. CEO Bob Iger spoke with CNBC about the company’s plans to implement new account-sharing policies, following in the footsteps of Netflix. Starting this summer, Disney Plus accounts suspected of improper sharing will be given new capabilities to allow borrowers to start their own subscriptions. Later in the year, account holders will have the option to add individuals from outside their household for an additional fee.
Subscribers received emails detailing changes to user agreements, which now specify that accounts cannot be shared with anyone outside the primary household residence. Disney reserves the right to review usage habits and potentially limit or terminate access for those who violate this policy. The updated terms went into effect earlier this year for new users and existing customers, in an effort to create a more secure and profitable streaming environment for Disney.
Bob Iger first announced plans to address account sharing in August, citing it as a priority for 2024. The company began its crackdown in Canada before unveiling new rules in November to enforce subscription policies. By comparison, Netflix charges a fee for each additional subaccount, which has been successful in driving up subscriber numbers. Some former password borrowers have opted to sign up for their own accounts, contributing to the streamer’s growth and success.
In addition to the password-sharing crackdown, Disney is making other changes to its streaming business. The company recently launched a single-app option that combines Hulu and Disney Plus, offering users a more integrated experience. Additionally, Disney announced a joint venture with Warner Bros. Discovery and Fox to create a new sports streaming service, expanding its reach in the competitive streaming market. These strategic moves showcase Disney’s commitment to innovation and growth in the digital entertainment space.
As Disney continues to adapt and evolve its streaming platforms, the company is positioning itself for future success in the ever-changing entertainment landscape. By implementing new account-sharing policies and exploring partnerships with other industry leaders, Disney is working to enhance the user experience and drive revenue growth. With a focus on monetization and subscriber retention, Disney is establishing itself as a major player in the streaming industry, with plans for further expansion and innovation in the coming years.
