After suffering heavy losses, Disney+ intends to recover its money and will make subscribers who do not respect the rules pay a high price very soon.
The search for profitability is the main problem with SVOD platforms. And being a market leader like Netflix, or a giant with great power like Prime Video, does not necessarily guarantee this much-desired balance. To do this, services often change their economic model, and unsurprisingly, the most common method is to increase subscription prices. But for some time now, another solution has been implemented and Disney+ intends to exploit it like its biggest competitor.
Bad news for Disney+ subscribers
In an interview for CNBC, Bob Iger, the boss of Disney, discussed his future strategy with regard to the video streaming platform Disney+. His intention is clear to say the least, we must absorb the financial losses and get things back on track. And it started several months ago with a price increase and went even further with the introduction of ads in premium subscriptions. The other way, which has already been chosen by Netflix, is to put an end to free account sharing and to charge extra for those who wish to keep this option. A radical decision, but one that bore fruit for the firm with the red N. The latter having regained subscribers in the process.
This gave ideas to Disney+ which will reproduce exactly the same model. Since March 2024, account sharing has been prohibited – in Canada and the United States – and the company had even threatened free riders with retaliation. “We may limit access to the Service or terminate the subscription, and/or take any other action permitted under the Agreement”. During his interview, Bob Iger toughened his tone. From June 2024, Disney+ account sharing will be paid for exactly like Netflix. And no, the French will probably not escape it since it will also be introduced in other parts of the globe from September 2024.
In June, we’ll make our first real foray into account sharing. This will only be reserved for a few countries and markets at first. But it will expand significantly with a full rollout in September.
Via CNBC.
Paid account sharing, but at what price?
Rather than completely removing account sharing, Disney+ will charge for it. And you’re probably wondering how much it will cost. No announcement has been made on the subject, but Bob Iger being very admiring of the success of Netflix, there is a chance that he will be inspired by it. Currently, if you want someone outside your household to use your Netflix subscription, there is a fee of €5.99 per month on top of the base price. For example, with the Standard plan (without ads), the bill rises to €19.48 per month. To add two additional people, you must subscribe to Netflix Premium, which makes a total of €31.97 per month.