In a move that mirrors its streaming competitor Netflix, Disney+ is set to crack down on password-sharing starting in 2024, as announced by Disney CEO Bob Iger during today’s earnings call. The decision comes as Disney seeks to address heavy financial losses and bolster its subscription-based revenue model. The platform’s effort to curb password-sharing reflects the industry’s ongoing battle to strike a balance between customer convenience and protecting its bottom line.
Iger highlighted the company’s proactive approach, stating that Disney is actively exploring solutions that both deter account sharing and accommodate legitimate sharing among paying subscribers with friends and family. This strategy aims to retain existing subscribers while also driving new monetization avenues. Updates to subscriber agreements and sharing policies are expected later this year, with the implementation of these tactics scheduled for 2024.
The decision to clamp down on password-sharing is considered a “priority” by Iger, underscoring the significance of this move for Disney’s streaming business. While it remains uncertain how much growth this crackdown will generate, the intention is clear: to create a more sustainable and profitable streaming ecosystem.
This initiative follows in the footsteps of Netflix, which began limiting password-sharing earlier this year. The move not only contributed to increased revenue but also saw an upswing in new subscriber sign-ups, surpassing initial expectations. Disney+ is looking to replicate this success while remaining true to its core pillars.
As part of its strategy, Disney also announced plans for a price increase. Beginning October 12, Disney+ Premium will see a rise from $10.99 to $13.00 per month, and Hulu’s monthly subscription will increase from $14.99 to $17.99. This price adjustment marks the second increase in less than a year for Disney+, a testament to the company’s commitment to investing in the growth of its streaming platform.
Despite the challenges and financial setbacks faced since its launch, Disney+ remains a crucial element of Disney’s future. CEO Bob Iger reaffirmed the company’s dedication to streaming, describing it as a “young business” that forms a vital cornerstone for the company’s ongoing success. Disney+ will continue to draw on its iconic franchises, with highly anticipated releases like “Star Wars Ahsoka” premiering this month and “Loki Season 2” set for October.
In a broader context, the streaming industry as a whole is grappling with complex issues, as explored by Amelia Emberwing in her regular Streaming Wars column. The challenges and evolving dynamics of the streaming landscape are a testament to the industry’s constant adaptation and innovation.
As Disney+ gears up for its 2024 password-sharing crackdown, the streaming world is watching closely to see how this move will impact its growth trajectory. With a strategic focus on both protecting revenue and offering value to its subscribers, Disney aims to secure its place in the competitive streaming arena for years to come.
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