Latest News

Disney to Restrict Password Sharing Like Netflix

08 August 2024

|

Zaker Adham

Summary

Disney Plus is set to follow Netflix's lead by limiting password sharing outside of primary households. This move was confirmed by Disney CEO Bob Iger during a recent earnings call, with the crackdown expected to start in September.

 

Disney's streaming services, including Disney Plus, ESPN Plus, and Hulu, have recently turned profitable, generating around $47 million in Q3. Despite this success, the company's approach to password sharing has been inconsistent. Earlier this year, Disney announced plans for paid sharing, notifying some users, and even launching it in select countries. However, details on when this will be available to US customers remain unclear.

 

With the upcoming restrictions, US customers can expect to see paid sharing options soon. While the cost is not yet disclosed, it may be similar to Netflix's additional $7.99 fee for adding an extra user.

 

In addition to the password sharing crackdown, Disney is also raising prices for its streaming services starting in October. Despite potential subscriber loss, Iger is confident that new features like curated playlists and ABC News Live will add value and retain users. This optimism is supported by the recent growth of nearly a million subscribers for Disney Plus and Hulu.