After Netflix, the streaming platform Disney+ has been in the news for bringing in new policies to restrict users from password sharing. While the streaming platform did confirm that the policy will restrict users from sharing their passwords outside their household, no clear date was set for when the crackdown would start. However, now we know. In an interview on CNBC, Disney CEO Bob Iger revealed that the company is planning on “launching our first real foray into password sharing” in June 2024.
This move, announced by CEO Bob Iger, is in line with the company’s efforts to boost Disney’s streaming revenue and achieve profitability. Iger emphasised the significant role streaming plays in Disney’s profit goals. To achieve this, eliminating password sharing is considered a critical strategy. The company plans to launch its initial measures in June, targeting specific countries before expanding globally by September.
“In June, we’ll be launching our first real foray into password sharing. Just a few countries in a few markets, but then it will grow significantly with a full rollout in September,” said Iger in the interview.
Notably, Disney+’s password sharing crackdown rollout plan outlines a two-pronged approach: Initial Launch in June 2024 in selected markets, and Global Expansion with a full rollout by September 2024. This strategy follows Disney’s intention to carefully implement the new policy while gauging its effectiveness.
Detailing more about the password sharing crackdown, Disney’s CFO, Hugh Johnston, announced in a recent financial briefing that starting this summer, users flagged for potential account sharing will be prompted to create individual subscriptions. Additionally, the option to include users from different households will be available for an extra charge, though the exact cost remains undisclosed.
Interestingly, in a move to boost subscriptions to their combined streaming service, Disney recently launched a combined Disney+ and Hulu app. This new platform brings all the content from both services together in one place, offering a more streamlined user experience. To personalise recommendations even further, the app even merges viewing history from both sides.
“We feel great about the engagement of those Disney subs who are not getting Hulu who are now watching more programs that were on Hulu, including Shogun.. We have to increase engagement. We need the technological tools to lower churn, create more stickiness. It’s things like recommendation engines, getting to know our customers better,” Iger told CNBC.
Additionally, Iger reveals that Disney is also aiming to connect user identities across their various platforms, including Hulu, Disney+, ESPN, and even cable. This unified identity system is said to be important for their upcoming password-sharing restrictions.
Certainly, CEO Bob Iger has ambitious plans for the streaming sector, including a standalone ESPN streaming service. Iger is also confident that Disney + will achieve profitability by the end of year 2024, and the option for paid account sharing is likely to further accelerate this goal.
Impact on subscribers
As for how the Disney+’s password crackdown will impact subscribers, U.S. subscribers were notified of the impending policy earlier this year, but without a specific timeline. Iger’s recent announcement clarifies the two-month timeframe until implementation begins.
Meanwhile, Disney isn’t the first to tackle password sharing. Last year, Netflix successfully implemented a similar policy in the U.S., utilising data analytics to verify an account’s primary location and deterring unauthorised access. This approach reportedly boosted Netflix’s subscriber base, paving the way for Disney’s current strategy.
While details about Disney’s exact methods remain undisclosed, it’s likely they’ll involve monitoring account activity to ensure Disney+ and Hulu services are restricted to a single household.
Source Agencies
