It has been known for quite some time that Disney+ will be cracking down on password sharing. The actual implementation of the updated user agreements for Disney+ regarding password sharing hadn’t been known until now. Bob Iger, fresh off winning a proxy fight against shareholder activist billionaire Nelson Peltz, spoke with CNBC on Thursday morning. During the interview, Iger shared that Disney will begin to crack down on password sharing for Disney+ starting in June.
The password sharing crackdown will initially begin in some countries in June, Iger shared. This will then expand to other countries in September. While password sharing hasn’t been allowed before, it hasn’t been enforced either. A recent update to Disney’s user agreements for its streaming services indicated that enforcement was coming. In March, Hulu began to enforce its password sharing policies.
The crackdown follows a trend that began with Netflix. Netflix began cracking down on passwords in May 2023 and saw an increase in subscribers almost immediately. Within two days, 100,000 new subscribers signed up for the streaming service. Leading up to the crackdown, Netflix saw a 100% increase in sign-ups in the 60 days prior to its crackdown. Disney hopes to replicate these results as it continues to move toward profitability for its streaming services.
“Netflix is the gold standard in streaming,” Iger said in the interview. “They’ve done a phenomenal job and a lot of different directions. I actually have very, very high regard for what they’ve accomplished. If we can only accomplish what they’ve accomplished, that would be great.”
During the interview, Iger also shared that Disney has consolidated its streaming services. He didn’t say exactly how, however.
The password crackdown was initially announced last year during the third quarter fiscal earnings call. “We certainly have established this as a real priority,” Iger said during the call. “We actually think that there’s an opportunity here to help us grow our business.” In the coming months, this premise will be proven true or false.
What do you think about Disney cracking down on password sharing for Disney+ subscribers? Do you think it will be a good thing for Disney? Share your thoughts and opinions in the comments below!
