Disney to Crack Down on Password Sharing, Taking Lessons from Netflix

The Walt Disney Co. is taking inspiration from Netflix and taking action against password sharing among its global streaming customers. In a recent earnings call, Disney CEO Bob Iger announced that the company is actively searching for ways to address account-sharing and find the best solutions for their paying subscribers. With a huge subscriber base of 146.1 million for Disney Plus alone, Disney is prioritizing the issue of account-sharing in 2024. They plan to update their subscriber agreements later this year with new terms regarding sharing policies. This move aligns with Disney’s goal of optimizing policies and increasing monetization in the upcoming year.

Since Bob Iger’s return in November, Disney has been focusing on maximizing profitability in its streaming business. Taking a cue from Netflix, who implemented additional fees for members sharing passwords outside of their primary household, Disney hopes to discourage similar losses in subscribers. In a significant move, Disney will soon be raising the prices for its ad-free Disney Plus and Hulu subscriptions, and will also introduce a new ad-free bundle option for consumers. The price increase is scheduled for October 12, and the new bundle option will be available starting from September 6.

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