It has been known for some time that password sharing will become a thing of the past in the near future for Disney+ subscribers. After initially announcing that the crackdown would start in June, it appears that September is when things will really get going.
On an earnings call this week, Disney CEO Bob Iger provided and update on the crackdown. “We started our password-sharing initiative in June,” Iger told shareholders during the call. “That kicks in, in earnest, in September.” the Disney CEO also said that the company had received “no backlash at all” in response to notices about the upcoming password sharing changes.
The effort to get rid of free password sharing comes to Disney after Netflix saw success with it first. The way it will work is password sharing won’t be allowed anymore. However, there will be a way to share an account. Primary account holders will be able to add others as an Extra Member to their account for an addition fee. The cost of the additional fee has not been revealed at this point.
It makes sense that the password sharing limitations will go into effect in earnest in September. Disney+ will be adding a new continuous playlist feature to the streaming service. It will also be seeing new prices come for subscribers as well. The new prices will go into effect on October 17, 2024.
With this new initiative in effect, those who wish to watch Disney+ and traditionally shared an account will be left with two options. Both of these options will provide additional revenue to Disney. In one case, they get their own subscription. The other way, they could be added as an Extra Member for that additional cost.
If things go for Disney the same way that they did for Netflix, getting rid of password sharing should see a boost in revenue. This will not only satisfy shareholders. It will also pay for new movies, series, shows, and other costs associated with content creation.
