Disney has revealed that it’s planning to crack down on the practice of password sharing on its Disney+ streaming service in an attempt to stem its hemorrhaging of money on the platform.
Likely after seeing the success Netflix has had with its own implementations of password-sharing restrictions and the option for subscribers to add additional users for an extra fee, with nearly 6 million new subscribers added in the second quarter of this year, Disney’s CEO Bog Iger stated the company’s plans to look into similar action in a recent earnings call, saying:
“We are actively exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family,” Iger said. “Later this year, we will begin to update our subscriber agreements with additional terms and our sharing policies. And we will roll out tactics to drive monetization sometime in 2024.”
“In calendar 2024, we’re going to get at this issue,” the CEO added.
Iger stressed that streaming is still a relatively young business, especially for Disney, and that it’s still a core focus for the company, saying “…moving forward, I believe three businesses will drive the greatest growth and value creation over the next five years. They are our film Studios, our Parks business, and Streaming – all of which are inextricably linked to our brands and franchises.”
Disney also announced a price increase for Disney+ for its US customers with prices going up from $10.99 USD per month to $13.99 USD per month for Disney+ Premium, which is its ad-free equivalent to the only subscription option here in Australia. The service’s cheaper, ad-supported to is also being rolled out to some new regions soon, including in Canada and the EMEA. It’s not clear at this stage how or if any of these changes will affect us locally but we’ll update when we have more.