Disney is taking steps to curb password sharing on its Disney+ streaming service in an effort to boost signups and revenue. The crackdown on password sharing is set to begin in June in some countries and will be more broadly enforced in September. While the terms of service for Disney+ and other Disney streaming services prohibit customers from impersonating someone else by using their login information, the policy has not been strictly enforced in the past.
In addition to Disney+, Hulu, another streaming service owned by Disney, started limiting account sharing outside of households in March. Disney’s decision to crack down on password sharing comes after their rival Netflix saw an increase in signups following a similar crackdown on password sharing. Netflix added 100,000 new accounts in the days following their policy change, resulting in a more than 100% increase in sign-ups compared to the prior 60-day average. Disney hopes that a similar boost in signups will contribute to moving the Disney+ streaming platform towards profitability.
Disney CEO Bob Iger praised Netflix as the gold standard in streaming and expressed admiration for their accomplishments in the industry. He stated that Disney aspires to achieve what Netflix has accomplished in terms of success. While Disney+ continues to operate at a loss, the company is optimistic about turning a profit in the near future. Iger also mentioned that Disney+ has made changes in its streaming business but did not provide specific details on which departments or roles were affected by the restructuring.
The crackdown on password sharing was a long-anticipated move by Disney, with Iger mentioning in an earnings call last year that it was a priority for the company. He believes that enforcing stricter measures against password sharing presents an opportunity for Disney to grow its streaming business. By cracking down on password sharing and increasing signups, Disney hopes to replicate the success that Netflix has achieved in the streaming industry. The company is focusing on consolidating its streaming services and making strategic changes to drive growth and profitability in the competitive streaming market.
