Disney+ becomes the latest streaming service to begin cracking down on password sharing on its platform after the company said it aims to address financial losses.
Disney CEO Bob Iger announced the development during the latest earnings call. He marked the moment that the company joins others, such as Netflix, in addressing sharing accounts between people, some of whom do not pay for the service.
Disney+ To Crack Down on Password Sharing
In his statement, Iger said they are currently exploring ways to address the issue and discussing the best options for paying subscribers to share their accounts with friends and family. He said that they will update their subscriber agreements with additional terms and sharing policies later this year.
Iger also said that he needs to learn how much cracking down on password sharing will drive the streaming service's growth. He noted that Disney+ lost billions of dollars since its original launch and described the latest situation as a "priority," as IGN stated.
The situation comes after Netflix began limiting the sharing of passwords among its customers earlier this year after losing a good chunk of its subscribers. In July, the streaming service also announced that the decision to crack down on password sharing increased revenue.
On top of Disney's plan to crack down on password sharing, officials also revealed plans to increase prices for the streaming service's subscriptions. From Oct. 12, Disney+ Premium will cost $13 per month, up from $10.99, and Huly will cost $17.99 per month, up from $14.99. It marks the second time Disney+ has increased its prices in less than a year.
Iger noted that the company remains committed to streaming, arguing that it is still a relatively young business but is nevertheless one of its core pillars moving into the future. Disney plans to lean on core franchises for the streaming service as new series are set to release soon.
Addressing Financial Losses
The Disney CEO was previously asked how many people share passwords on its streaming platform, but he declined to reveal a number, only noting that it was "significant." He added that the company can technically monitor sign-ins, according to The Verge.
He said that while the company plans to begin efforts to address the issue in 2024, it could not be completed within the calendar year. Furthermore, subscribers to the streaming service located in the United States and Canada decreased from 46.3 million to 46 million.
This is seen as one of the reasons that drove the company to crack down on password sharing. The company's India-based Hotstar service also suffered a huge blow, losing more than 12 million subscribers since April this year, leaving it with only 40.4 million.
The crackdown on password sharing is one of Disney+'s options in addressing financial losses and includes other efforts such as cutting content spending and introducing cheaper, ad-supported options, said CNBC.
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