Disney+ Password Sharing Crackdown Coming, Says CEO
In a move to boost monetization, Disney+ has announced plans to clamp down on password-sharing by 2024. The announcement was made by Disney CEO Bob Iger during the company’s third-quarter earnings call on Wednesday.
“We are actively exploring ways to address account sharing and the best options for paying subscribers to share their accounts with friends and family,” said Iger on the earnings call (via The Wrap).
He further revealed that updates to subscriber agreements and sharing policies would be introduced later this year, with monetization tactics set to roll out in 2024.
This decision follows in the footsteps of Netflix, which saw a significant increase in paid subscribers after implementing its own password-sharing restrictions. Iger, while not disclosing specific numbers, emphasized the company’s technical capability to monitor account activities and deemed the initiative a top priority. He believes this move presents an opportunity for business growth.
Highlighting the company’s future strategy, Iger identified Disney+ as one of the three main pillars that will propel Disney’s growth in the coming years, alongside its film studios and parks business. He emphasized the interconnectedness of these sectors with the company’s brands and franchises.
Despite a drop of 300,000 subscribers in the U.S. and Canada during the recent quarter, Disney+ reported an increase in average monthly revenue per paid subscriber, rising from $7.14 to $7.31, attributed to higher advertising revenue.
Yesterday, the company also announced Disney+ is set to launch an ad-supported offering in select European markets and Canada from November 1. Click here to read about the new Disney+ with ads plan and an upcoming price increase.