In a move that’s been long anticipated by many, Disney is set to launch a major crackdown on password sharing for its popular streaming service, Disney+, starting this September. The announcement came during the company’s recent earnings call, as reported by The Verge, where CEO Bob Iger outlined the strategy to transform Disney+ into a more profitable growth business.
“We’ll begin eliminating password sharing in earnest next month,” Iger stated during the call. This decision follows in the footsteps of streaming giant Netflix, which implemented similar measures in 2023 and subsequently saw a significant boost in subscriber numbers.
The crackdown is apparently part of a broader strategy to increase revenue and profitability for Disney’s streaming services. In addition to tackling password sharing, the company has announced price hikes for Disney+, Hulu, and ESPN+ starting in October. Disney+ with ads will see its price increase from $7.99 to $9.99 per month, while the ad-free version will jump from $13.99 to $15.99 monthly.
Despite these changes, Iger expressed confidence in the company’s approach. “We’ve had no backlash at all to the [paid sharing] notifications that have gone out and to the work that we’ve already been doing,” he said, referring to initial steps taken in some countries in June.
While specific details about the implementation of paid sharing in the U.S. and other major markets remain unclear, it’s expected that Disney will offer subscribers the option to pay extra to share their plans with individuals outside their household. Pricing for this feature has not yet been announced.
As highlighted by The Verge, Disney is also adding new features to justify the price increases, including ABC News Live and curated playlists. Iger believes these additions give the company “pricing leverage” and may help retain subscribers despite the higher costs.
With the rising costs of streaming services and other subscriptions, it’s becoming overwhelmingly expensive to keep up with them. Many are even considering canceling their subscriptions following the news about the crackdown.
Dwayne Cubbins
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For nearly a decade, I've been deciphering the complexities of the tech world, with a particular passion for helping users navigate the ever-changing tech landscape. From crafting in-depth guides that unlock your phone's hidden potential to uncovering and explaining the latest bugs and glitches, I make sure you get the most out of your devices. And yes, you might occasionally find me ranting about some truly frustrating tech mishaps.
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