We now have a clearer idea of when the crackdown on Disney Plus password sharing will begin. Speaking with CNBC, CEO Bob Iger said Disney would “launch its first real foray into password sharing” in June, first applying the crackdown to “just a few countries and a few markets, but then it will expand significantly with a full deployment in September.”
During Disney's first quarter earnings conference call in February, the company announced plans to implement new account sharing policies by implementing fees for Disney+ streaming customers later this year. This decision continues a trend launched by Netflix and came after the media giant updated its subscription contracts for Disney Plus, Hulu and ESPN Plus.
“Starting this summer, Disney Plus accounts suspected of oversharing will be equipped with new features allowing their borrowers to start their own subscriptions,” CFO Hugh Johnston said during the earnings conference call. “Later this calendar year, account holders who wish to allow access to people outside of their household will be able to add them to their accounts for an additional fee.”
Subscribers have received emails detailing changes to user agreements for each platform. Subscribers cannot share their accounts with anyone outside of their primary residence unless permitted for their tier, per Disney's policies. The agreement says the company can verify compliance by reviewing your usage habits and choosing to “limit or terminate access.” The policy went into effect on January 25 for new users and March 14 for existing customers.
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Iger first shared his plans for address account sharing in August, saying this would be a priority in 2024 for its global subscriber base. He added that the move would support the company's efforts to increase monetization in the new year. Disney began its crackdown in Canada and unveiled new rules in November.
For comparison, Netflix charges $8 for each “additional member” subaccount, with limits on how many people can be added to a Premium or Standard membership. Although the streamer faced initial backlash over the change, it helped increase its subscriber count. Some past password borrowers have signed up for their own accounts, like his $7 account. advertising-based plan.
Disney is evolving its streaming business in other ways. The company has fully launched its Hulu on Disney Plus single app option last week and in February announced a joint venture with Warner Bros. Discovery and Fox for create a new sports streaming service.