You might have to start saving up for the discounted annual subscription!
Attention, Disney+ junkies! Looks like our days of password sharing are coming to an end. We might need to each have our own subscription soon to continue enjoying shows like the currently airing Shōgun (one of the best shows this year!), Only Murders in the Building, Percy Jackson and the Olympians, and of course your Disney and Pixar favorites.
According to Reuters, Disney is curbing password sharing for its Disney+ streaming service as part of a larger effort to boost signups and revenue starting this June.
A move to boost profits
CEO Bob Iger, in a CNBC interview on April 4, said its popular Disney+ streaming service will start cracking down on password sharing in June in some countries. This move will expand broadly and include more territories in September.
I know you’re thinking, “But Disney+’s terms of service already explicitly prevent customers from pretending to be someone else by using their username or password.” It sure does, but I’m sure you’ve also noticed the company hasn’t been exactly strict about password sharing.
As proof that Disney is not just issuing empty threats, Hulu, one of its other streaming services, has already started limiting how often customers can share account login information outside their households.
Following Netflix’s footsteps
I guess we have Netflix to blame for this move. Reuters said the crackdown comes as Disney’s fiercest rival in terms of streaming has attributed a surge in signups as a result of its crackdown on password sharing which started last May.
When the clampdown was introduced, many subscribers canceled, but shortly after Netflix recorded 100,000 new accounts in the following two days. It had also achieved a more than 100 percent increase in sign-ups from the prior 60-day average.
Inspired by Netflix’s success, Disney is hoping for something similar to happen. It anticipates that a similar boost could help move the company’s streaming platform toward profitability as Disney+ continues to lose money.
Netflix is the gold standard in streaming, admitted Iger in the interview. “They’ve done a phenomenal job and a lot of different directions. I actually have very, very high regard for what they’ve accomplished. If we can only accomplish what they’ve accomplished, that would be great,” he added.
He likewise mentioned that Disney+ has also consolidated its streaming business but didn’t provide further details.
The password crackdown has been expected for months. In an earnings call with investors last year, Iger said stricter password measures would help Disney grow.
“We certainly have established this as a real priority,” Iger said on Disney’s fiscal third-quarter earnings call. “We actually think that there’s an opportunity here to help us grow our business.”
Oh well! Seems as if Disney means business so you better tell you cousin or friend with whom you’re sharing your password to start setting money aside from the cheaper annual subscription fee.
