Disney is implementing a crackdown on password sharing for its Disney+ streaming service in an effort to increase signups and revenue. CEO Bob Iger announced in a CNBC interview that the service will begin enforcing stricter measures in June in some countries, with broader enforcement planned for September. While the terms of service for Disney+ and other Disney streaming services prohibit password sharing, the policy hasn’t been widely enforced in the past.
Hulu, another streaming service owned by Disney, has already started limiting how often customers can share account login information outside of their households, beginning on March 14. The decision to crack down on password sharing comes after Disney’s rival Netflix saw a significant increase in signups following a similar crackdown on password sharing. Netflix added 100,000 new accounts in the two days following the implementation of the crackdown, with a more than 100% increase in sign-ups compared to previous averages.
Disney hopes that by curbing password sharing and increasing signups, its streaming platform can become more profitable. Disney+ continues to operate at a loss, but the company anticipates turning a profit in the near future. Bob Iger acknowledged Netflix as the “gold standard” in streaming and expressed admiration for the success they have achieved. He believes that emulating their accomplishments could benefit Disney in the long run.
In addition to the password crackdown, Disney has made efforts to consolidate its streaming business, although specific details about which departments or roles have been affected were not provided. The decision to crack down on password sharing had been anticipated for some time, with Iger mentioning the upcoming measures as a way to help Disney’s overall growth during an earnings call with investors last year. The company sees this as an opportunity to drive business growth and move closer towards achieving profitability for its streaming services.
As the streaming industry becomes increasingly competitive, Disney is focused on implementing strategies to boost its subscriber base and increase revenue. By cracking down on password sharing and enforcing stricter policies, the company hopes to see improvements in its streaming platform’s financial performance. Disney acknowledges that Netflix has set a high standard in the industry and aims to follow in their footsteps to achieve similar success. With a focus on growth and profitability, Disney is taking steps to maximize its streaming business’s potential in a crowded market.
