After a Disney Plus price hike hit South Africa in June, it seems that there’s further bad news for subscribers of the streaming service. In a recent earnings call, Disney CEO Bob Iger announced that the company will begin cracking down on password sharing for Disney Plus sometime in 2024. Netflix also recently pivoted towards password sharing restrictions in an effort to recoup heavy financial losses – a move that divided many viewers.
In the earnings call, Iger admitted that he didn’t know if cracking down on password sharing would end up being beneficial for Disney Plus but the company seems determined to move ahead with it anyway, calling it a “priority.” The company apparently already lost billions with the launch of Disney Plus but now it’s exploring ways to drive further engagement.
Speaking during the earnings call, Iger stated:
“We are actively exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family. Later this year, we will begin to update our subscriber agreements with additional terms and our sharing policies. And we will roll out tactics to drive monetization sometime in 2024.”
While specific details about the company’s plans weren’t mentioned, it’s likely that Disney Plus will adopt a similar subscription model to Netflix’s current one which limits account-sharing to one household per subscription. We’ll just have to wait for more information from Disney to found out what will change and what subscribers will be expected to pay as a result of those changes next year.
Despite initially losing subscribers after limiting password sharing earlier this year, Netflix reported that the move actually increased revenue and that new sign-ups were exceeding expctations. Naturally, this was expected to happen since users no longer living in the same household had to create new accounts.