Disney CEO Bob Iger has announced that the company plans to implement stricter rules around password sharing on Disney Plus starting in June. The rollout will begin in a few select countries and markets before expanding to all subscribers in September. This move comes after Disney introduced rules to prevent password sharing for new subscribers on January 25th, which were then extended to existing members on March 14th. Netflix was the first streaming service to crack down on password sharing in 2023 by charging users an additional fee to add extra viewers outside of their household.
Disney’s chief financial officer, Hugh Johnston, confirmed that subscribers suspected of improper sharing will be prompted to sign up for their own subscription this summer. Additionally, subscribers will have the option to add members outside of their household for an additional fee, although the exact cost has not been disclosed yet. The recently launched combined Disney Plus and Hulu app aims to increase engagement by incorporating content from both services and using watch history to inform recommendations. This move is part of Disney’s efforts to lower churn, create stickiness, and enhance customer experience with tools such as recommendation engines.
Disney is also working on unifying user identities across different apps and services, such as Hulu, Disney Plus, and ESPN, to crack down on password sharing more effectively. Iger stresses the importance of increasing engagement and getting to know customers better through technological tools. With big plans for the company’s streaming business, including a streaming-only version of ESPN, Iger predicts that the streaming division will achieve profitability by the end of the fiscal year. The introduction of paid sharing is expected to help reach this goal, as well as to reduce unauthorized sharing among subscribers and improve revenue for the company.
The move to implement stricter rules around password sharing on Disney Plus highlights the growing trend among streaming services to crack down on unauthorized sharing. By charging an additional fee for adding extra viewers outside of the household, Disney aims to increase revenue and reduce subscriber churn. The integration of Disney Plus and Hulu content in a combined app is part of Disney’s strategy to enhance customer engagement and experience, as well as to increase stickiness. With plans to unify user identities across different services, Disney is positioning itself to better understand its customers and prevent unauthorized sharing effectively.
Despite the initial rollout of stricter password sharing rules, Disney CEO Bob Iger aims to expand these measures globally and increase profitability for the streaming division. By introducing paid sharing options and leveraging technological tools such as recommendation engines, Disney hopes to create a more personalized experience for subscribers and reduce churn. With a focus on understanding customer behavior and increasing engagement, Disney’s efforts to crack down on password sharing and improve revenue are aligned with its long-term streaming strategy. As the streaming landscape continues to evolve, Disney’s proactive approach to addressing password sharing reflects its commitment to enhancing the customer experience and maximizing profitability.