New Delhi: Disney Plus is following in Netflix’s footsteps and will soon crack down on password sharing. This means that people will no longer be able to share their Disney Plus passwords with anyone outside their household. Disney CEO Bob Iger announced during an earnings call that starting this September, the company will strictly enforce these new rules to prevent password sharing, as per reports by The Verge.
Password Sharing Rules Get Clearer
Disney’s stance on password sharing has been unclear until now. In February, they hinted at a possible paid sharing model and started notifying users about upcoming changes. By June, they had introduced paid sharing in a few countries but hadn’t specified when it would come to the US. Now, Disney plans to extend paid sharing to more subscribers by September though they haven’t yet revealed how much it will cost.
Following Netflix’s Strategy
Disney’s strategy has been similar to Netflix’s which started paid sharing last year and charges an extra 7.99 dollars per month to add another user to an account. Even after the initial worries Netflix’s crackdown on password sharing has been mostly accepted by users. Disney CEO Bob Iger mentioned that Disney hasn’t faced any major backlash from users about the notifications and steps they’ve taken so far.
Subscription Prices Going Up
Along with cracking down on password sharing, Disney will also raise subscription prices for Disney Plus, Hulu and ESPN Plus starting in October. CEO Bob Iger is confident that these price increases won’t lead to a significant loss of subscribers. He highlighted that Disney plans to add more value with new content, like ABC News Live and curated playlists to justify the higher prices and strengthen their offering.
The price hikes and crackdown on password sharing come after Disney Plus, Hulu and ESPN Plus turned a profit for the first time this quarter. Disney is keen to keep this profitability by boosting revenue through paid sharing and higher subscription prices. By taking a similar approach to Netflix, Disney aims to reduce password sharing and ensure its streaming services continue to thrive financially.