For years, Disney Plus was a relatively affordable streaming option that friends and family could easily share. However, the giant is now preparing to put an end to account sharing in the very near future.
In an interview with CNBC this week, Disney CEO Bob Iger revealed that the crackdown on password sharing would begin in June in some markets. However, full global rollout prohibiting external access is planned for September.
“ We will launch our first real foray into password sharing in a few countries and markets, but will then expand significantly with a full rollout in September said Bob Iger bluntly.
Disney+ follows in Netflix’s footsteps against account sharing
This initiative reflects similar efforts by streaming rivals like Netflix to restrict the borrowing of login credentials outside of subscribers’ homes. For Disney, this is a major strategic shift aimed at converting the popular Disney+ service into a more even revenue growth engine.
“ From the start, we said streaming was a great opportunity for the business to transform “, explained Iger of the importance placed on the growth of the number of paid subscribers over the number of registrations themselves.
Details remain scarce on how Disney’s password sharing rules will take shape. The company, however, set some milestones at the start of the year by updating the user contracts for Disney Plus, Hulu and ESPN Plus.
These changes, which took effect in January for new subscribers and in March for existing accounts, explicitly prohibited the sharing of login information with anyone outside the primary household. The terms provide that Disney may monitor usage patterns and account activity to enforce this prohibition.
Disney began informing certain account holders last September that password sharing was going to be banned, but without specifying the implementation timetable. While Iger’s comments today don’t answer all the questions we have, it’s at least a clear signal that the rollout will begin in just two months. In France, We should therefore expect the measure to become effective next fall.
How much will additional accounts cost on Netflix?
During the company’s first quarter results presentation in February, Chief Financial Officer Christine McCarthy hinted that the crackdown was imminent. She declared that accounts “suspected of abusive sharing” would soon be invited to create new paid subscriptions for external users or to pay additional “borrowing fees”.
For this, Disney strives for example “ unify identities so that your identity on the Hulu app is connected to your identity on Disney Plus, ESPN and your cable box ”, which will be essential to effectively combat password sharing.
Although Disney has not yet specified the price of the potential additional access, the standard rate appears to be in the $7-$8 range, based on Netflix’s “home sharing” fees.
As a reminder, Netflix’s initiative against password sharing caused some excitement initially, but it ultimately helped increase the number of paying subscribers. Disney is likely hoping to achieve the same results and is banking on the popularity of its current and upcoming shows. Among them, we can notably cite The Acolyte, the Star Wars series which will also be released in June.