Disney has announced a new policy that will crack down on password sharing for its streaming service, Disney Plus. The new policy will go into effect this September, meaning that users will no longer be able to share their passwords with people outside of their household. This move comes as Disney is also raising prices across Disney Plus, Hulu, and ESPN Plus starting in October.
Disney’s Crackdown on Password Sharing
During an earnings call, Disney CEO Bob Iger stated that the crackdown on password sharing will start “in earnest” in September. This means that users who have been sharing their Disney Plus passwords with friends or family members outside of their household will no longer be able to do so. While the timeline for this crackdown has been somewhat unclear, it appears that Disney is serious about implementing this new policy in the coming months.
In February, Disney announced plans to roll out paid sharing and began notifying users about the change. In June, paid sharing was launched in a few countries, but there was no information on when it would reach the US. Now, it seems that the rollout of paid sharing to more subscribers will happen in September, although details on pricing have not yet been revealed.
Netflix, another popular streaming service, rolled out paid sharing last year, charging an extra $7.99 per month to add another person to your account. Despite this, Iger says that there has been no backlash to the notifications that have gone out regarding paid sharing. This move by Disney could potentially help the company maintain profitability, especially as Disney Plus, Hulu, and ESPN Plus are turning a profit for the first time this quarter.
Price Increase Across Disney Services
In addition to cracking down on password sharing, Disney is also raising prices across its streaming services, including Disney Plus, Hulu, and ESPN Plus. These price increases are set to take effect in October, and Iger has expressed confidence that the company will not lose subscribers due to the price hike. He believes that the addition of ABC News Live and curated playlists will give Disney “pricing leverage” and help offset any potential subscriber losses.
With Disney Plus, Hulu, and ESPN Plus all turning a profit for the first time this quarter, it makes sense that Disney would want to maintain that profitability. By raising prices and implementing paid sharing, the company can ensure that its streaming services continue to be successful in the long run.
Implications for Subscribers
For subscribers who have been sharing their Disney Plus passwords with friends and family members outside of their household, this crackdown on password sharing may come as a disappointment. However, it is important to remember that this move is aimed at ensuring that Disney Plus remains a profitable and sustainable streaming service in the long term.
Subscribers should be prepared for the upcoming changes and consider the implications for their viewing habits. While the exact pricing for paid sharing has not yet been revealed, it is likely that there will be an additional cost associated with adding extra users to an account. Subscribers may need to weigh the benefits of sharing their account with others against the potential cost of doing so.
In conclusion, Disney’s crackdown on password sharing and price increases across its streaming services are aimed at maintaining profitability and ensuring the long-term success of Disney Plus, Hulu, and ESPN Plus. Subscribers should be prepared for these changes and consider how they may impact their viewing experience moving forward.