Disney is to begin enforcing a crackdown on password sharing this September, the CEO confirms

Disney is preparing to strengthen its efforts against password sharing on its streaming services, including Disney+, Hulu, and ESPN+, beginning in September. CEO Bob Iger announced this during an earnings call, indicating a more proactive strategy to tackle the problem.

“We began our password-sharing initiative in June, and it will be fully implemented starting in September.

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Disney is to begin enforcing a crackdown on password sharing this September, the CEO confirms

August 8, 2024

Iger stated during the results call, “By the way, we’ve had no backlash at all to the notifications that have gone out and to the work that we’ve already been doing.”

Disney has been progressively enforcing steps to prevent password sharing, but the impending modifications suggest a more stringent implementation of account limitations. The corporation wants to turn households that share passwords into paying subscribers to increase revenue and profitability.

Specifics about the crackdown, including potential extra fees for additional users or restrictions on account access, are not yet clear. However, industry analysts anticipate that Disney may follow a model similar to Netflix, which has introduced paid sharing tiers.

This decision coincides with Disney’s plans to raise subscription prices for its streaming services, which has raised concerns about possible subscriber losses. The company will closely observe how these changes affect consumer behavior and revenue.

Iger also expressed confidence about the potential benefits of the recent price hikes on the subscriber base. He credited this optimism to the introduction of new content, such as ABC News Live and curated playlists, which he believes gives Disney “pricing leverage.”

Disney is increasing the cost of its streaming platform subscriptions. Disney+ with advertisements will cost $9.99 a month starting in October, up from $7.99, while the ad-free version will cost $15.99 from $13.99. ESPN+ and Hulu’s prices will also be impacted by these modifications.