Disney+ Password Sharing Crackdown to Start in June
Disney plans to start cracking down on Disney+ password sharing starting in June, Disney CEO Bob Iger said in an interview with CNBC earlier this week. Iger said that Disney needs to turn its streaming business into a growth business, and one way to do that is to force households that are sharing passwords to sign up for their own accounts.
"In June, we'll be launching our first real foray into password sharing," said Iger. "Just a few countries and a few markets, but then it will grow significantly with a full rollout in September."
Iger did not clarify where the password sharing lockdown will start, but it sounds like it will be largely worldwide when September rolls around.
Disney+ competitor Netflix put a stop to multi-household password sharing in 2023, and it ended up being a major revenue driver for the company. Netflix saw strong subscriber growth, gaining 8.8 million new subscribers in Q3 2023 after cracking down on password sharing.
Iger said that he admires what Netflix has done, calling the company the "gold standard in streaming."
Netflix is the gold standard in streaming. They've done a phenomenal job in 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.
Disney+ launched in 2019, and since then it has grown into the number two streaming service in terms of subscribers after Netflix. Prior to when Iger returned to Disney 2022, Disney+ was bleeding money as Disney focused on subscriber growth. Disney+ will see its first profitable quarter in the fourth fiscal quarter of 2024 under Iger's leadership.
Disney's streaming service has more than 110 million subscribers worldwide, and it has been integrating Hulu content into Disney+ in order to boost customer engagement. Disney+ is now priced at $10.99 per month for an ad-free subscription, or $7.99 for a subscription with ads.
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