Disney+ Set to Clamp Down on Password Sharing, CEO Announces
In a bid to bolster sign-ups and revenue, Disney is taking decisive action against password sharing on its Disney+ streaming service, with CEO Bob Iger revealing plans for a crackdown during a recent CNBC interview.
Starting in June, Disney+ will initiate measures to curb password sharing in select countries, with broader enforcement slated for September. While Disney’s terms of service explicitly prohibit users from sharing login credentials, the company has historically refrained from stringent enforcement.
The move follows in the footsteps of Hulu, another Disney-owned streaming service, which began restricting account sharing beyond household boundaries in March.
Disney’s decision comes amidst Netflix’s successful crackdown on password sharing, which resulted in a surge in new sign-ups. Antenna data revealed that Netflix added over 100,000 new accounts in the two days following its enforcement efforts, contributing to a significant uptick in subscription rates.
Such a surge in sign-ups could propel Disney+ towards profitability, a milestone the streaming platform is yet to achieve. Despite ongoing losses, Disney remains optimistic about its future profitability prospects.
Acknowledging Netflix’s pioneering role in the streaming landscape, Iger praised the platform’s achievements and expressed aspirations for Disney+ to replicate its success.
In addition to the password crackdown, Disney+ has streamlined its streaming business, although specific details regarding departmental restructuring remain undisclosed.
The impending enforcement of password sharing restrictions underscores Disney’s commitment to capitalizing on growth opportunities and solidifying its position in the competitive streaming market. With a concerted effort to clamp down on unauthorized account access, Disney aims to cultivate a more sustainable and lucrative streaming ecosystem.
