Disney is considering implementing a password-sharing crackdown, following in the footsteps of Netflix’s earlier successful move. CEO Bob Iger announced during an earnings call that the company is actively exploring strategies to address account sharing. Disney plans to update subscriber agreements and sharing policies in the near future and introduce tactics for monetization in 2024.
The potential crackdown is expected to target password sharing on Disney+ and other services, similar to Netflix’s extra fee for shared accounts.
Despite initial backlash and threats of membership cancellations from Netflix users, the streaming giant’s password-sharing enforcement led to a significant increase in new subscriptions in the US. While Netflix estimated that over 100 million households worldwide shared accounts prior to the crackdown, Iger did not disclose the exact number of shared accounts within Disney’s services but emphasized its significance.
He also noted the company’s technical capability to monitor sign-ins and revealed plans to address the issue in 2024.
Disney’s move to address password sharing aligns with its efforts to counter a decline in subscriptions, particularly on the Disney+ platform. Subscriptions dropped from 157.8 million to 146.1 million in the second quarter, including a decrease of 300,000 in the US and Canada. The steepest decline occurred in India, with Disney+ Hotstar experiencing a 24% drop from 52.9 million to 40.4 million subscriptions.
This decrease was anticipated due to Disney’s loss of broadcasting rights for the Indian Premier League to Viacom18 for a substantial $2.6 billion.