Disney Is Going To Crack Down on Password Sharing
After previously testing a new policy that limited password sharing on Disney+ Hotstar India, Disney will bring a similar tactic to the United States next year.
On the company’s quarter-three earnings call, Disney CEO Bob Iger revealed that the company is “actively exploring” ways to crack down on password sharing.
For their Disney+ Hotstar service, Disney limited users to four devices, it is unclear whether or not the US policy would be the same.
Tactics to Drive Monetization
While the new policy has yet to be revealed, Iger noted that Disney will “begin to update our subscriber agreements with additional terms and our sharing policies.” Additionally, the company will “roll out tactics to drive monetization in 2024.”
By limiting password sharing, Disney is hoping for one of two outcomes. On one hand, without password sharing, Disney hopes to drive new subscribers.
Disney Plus’ subscriber count remained largely flat in North America, falling from 48.3 million to 46 million. By cracking down on password sharing, Disney hopes to dig up more subscribers who are currently watching their content for free.
How many new subscribers Disney would gain this way remains a topic of debate. Previously, the company estimated that 5% of its Disney+ Hotstar India subscribers shared their password on more than four devices. Disney’s initial reaction was to ignore this password sharing to keep from offending their current subscribers.
Following Netflix’s Lead
The other route Disney could take with password sharing would be to follow in Netflix’s footsteps. The streaming giant recently introduced a new policy that allows users to pay extra in order to share their accounts with someone outside their household.
No matter which path Disney decides to take, one thing is clear, the days of unlimited password sharing on Disney+ are over.
What the future looks like remains to be seen, but it will be different.
As always, continue to check back with MickeyBlog. We will continue to update you on all the news surrounding Disney+ and The Walt Disney Company.
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