Disney+ to Implement Stricter Rules on Password Sharing Starting June

Disney is taking steps to limit password sharing for its Disney+ streaming service in order to increase subscriptions and revenue. CEO Bob Iger announced in a CNBC interview that starting in June, Disney+ will begin cracking down on password sharing in certain countries, with a more widespread enforcement planned for September. Despite the terms of service prohibiting customers from using someone else's username or password, Disney has not been actively enforcing this policy.

Hulu, another streaming service owned by Disney, started restricting the sharing of account login details outside of households on March 14.

This move by Hulu comes in response to Netflix's success in gaining new sign-ups after cracking down on password sharing. After implementing their crackdown in May, Netflix saw a significant increase in new accounts, adding 100,000 in just two days, as reported by Antenna. In fact, Netflix experienced over a 100% rise in sign-ups compared to the previous 60-day average.

A boost similar to what Disney experienced could help Disney+ become profitable. Currently, Disney+ is still losing money, but the company is hopeful that it will start making a profit soon.

In an interview, Iger praised Netflix as the gold standard in streaming. He acknowledged their phenomenal achievements and expressed high regard for them. He also expressed a desire for Disney to achieve similar success to Netflix.

Iger mentioned that Disney+ has streamlined its streaming operations, but did not provide further details on the specific departments or positions.

The enforcement of password policies had been anticipated for quite some time. During an investor earnings call last year, Iger mentioned that a forthcoming crackdown would contribute to Disney's growth.

"We have made this a top priority," Iger stated during Disney's third-quarter earnings call. "We believe that this presents an opportunity for us to expand our business."

Editor's P/S:

Disney's decision to limit password sharing for Disney+ is a strategic move aimed at increasing revenue and boosting profitability. By enforcing its terms of service, Disney is following in the footsteps of Netflix, which has seen a surge in new sign-ups after cracking down on password sharing. This move is likely to have a positive impact on Disney's financial performance, as the company seeks to make its streaming service a profitable enterprise.

The crackdown on password sharing is also a reflection of Disney's desire to emulate Netflix's success in the streaming market. Iger's admiration for Netflix as the "gold standard" in streaming underscores Disney's ambition to achieve similar levels of success. By implementing stricter password policies and streamlining its operations, Disney is positioning itself to compete more effectively with Netflix and other streaming giants.