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Disney joins Netflix in crackdown on password sharing
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Disney is taking Netflix’s lead to combat password sharing by 2024 as part of a plan to boost profitability.
CEO Bob Iger said the company is exploring options to address account sharing and plans to unveil its strategy later this year.
Iger said: “We already have the technical capability to monitor much of this. I’m not going to give a specific number, except to say that it is significant.”
Read More: Netflix Subscriptions Rise Due To Password Sharing Crackdown
While Iger expects some results from the rollout in 2024, the full implementation will extend beyond next year.
He said the strategy is a "real priority" for Disney.
This comes when streaming giants are increasingly looking for ways to increase revenue.
Earlier this year, Netflix introduced a new account-sharing policy in response to stagnating subscriber growth.
After the crackdown, in July, the company added 5.9 million customers in the second quarter.
Earlier, it had disclosed that over 100 million households, approximately 43 percent of its global user base, engaged in account sharing, impacting its content investment.
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It started initiating the limits internationally and, in May, notified the US customers to stop sharing accounts.
Subscribers were given options, including transferring profiles outside their household or paying an extra $7.99 monthly per external account holder.
As for Disney, the methods to restrict account sharing remain unspecified.
The company encompasses three streaming services: flagship Disney+, Hulu, and ESPN+, available individually or as a bundle for a lower price.
Disney would also offer a unified "one app experience" in the US, integrating Hulu content within Disney+.
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Price increases on the way
To improve revenue, Disney also announced price increases for its streaming services.
Disney+ without ads will see a 27 percent price hike to $13.99 per month, while ad-free Hulu will increase by 20 percent to $17.99 monthly.
Iger noted advertising is pivotal in achieving profitability and said the potential impact on subscriber growth remains uncertain.
He added: “Obviously, we believe there will be some, but we’re not speculating," underscoring the change as a growth opportunity for the business.
Both Disney and Netflix introduced a cheaper, ad-supported tier.
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