Netflix and Disney are gearing up to take a firmer stance against the practice of password sharing on their streaming platforms. Explore more.
Disney CEO Bob Iger has highlighted the prevalent issue of password sharing among Disney+ users, describing it as a “significant” concern that necessitates active intervention.
During a recent earnings call for Q2 2023, Iger revealed the company’s intention to address this matter earnestly. He emphasized that Disney already possesses the technological capability to monitor instances of password sharing closely. While declining to provide precise figures, he acknowledged the magnitude of the problem.
Iger also expressed uncertainty about how much curbing password sharing might directly translate into an increase in subscriber numbers, refraining from speculation.
Disney is poised to disclose its updated account-sharing policies later this year, with the implementation of these measures slated for 2024. Iger underlined this timeline: “Later this year, we will begin to update our subscriber agreements with additional terms on our sharing policies, and we will roll out tactics to drive monetization sometime in 2024.”
The company’s competitor, Netflix, had previously initiated trials of password-sharing limitations in specific countries, subsequently expanding the program to regions like Canada, New Zealand, Portugal, and Spain. As of May, Netflix globally encouraged users to desist from sharing accounts beyond their households and enabled payment for additional charges.
Netflix and Disney navigate tricky terrain in the face of stagnant subscriber growth and challenging economic circumstances.
In response, industry giants are considering various strategies, including price adjustments and implementing measures such as restricting password sharing. To entice a broader subscriber base, these players are also contemplating the introduction of more affordable ad-supported subscription tiers.
In addition to its efforts to address password sharing, Disney has announced forthcoming substantial hikes in subscription costs, slated to take effect later this year.
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