Disney+ is about to seriously crack down on password sharing
If you're into password sharing for Disney+, be warned: A crackdown is about to begin to end this practice. Find out more here!
The rise of streaming services has led to a few changes in the TV world. One trend was for people to share passwords to friends and family, allowing them to watch off someone else's account. That's been ignored for a time but the services are finally cracking down on it.
As the most popular streamer, Netflix was first as clearly, they prefer building up more subscribers rather than have folks just use another's account. Now, Disney+ is going to follow suit as Bob Iger related at the annual shareholder's meeting.
Disney+ has had issues regarding lower than expected subscribers and cutting a lot of programming. It culminated in merging the app with Hulu and ESPN+ as a single streamer or at least giving customers the option to add either service to a bundle package. This, of course, has just increased password sharing for folks who had only one of the services, letting others use their access.
According to Iger, in June Disney "will be launching our first real foray into password sharing" enforcement. The initial launch will be "just a few countries in a few markets" (he didn't identify them), then "will grow significantly with a full rollout in September."
Disney+, Hulu, and ESPN+ customers will start receiving e-mails that will prompt password-borrowers to start their own subscriptions. Later in 2024, account holders who want to allow access to individuals outside their household will be able to add them for an additional fee.
This is the same formula that Netflix has been using and it's no surprise Disney is trying to follow suit. It's no secret Disney wants to increase the numbers of their streamers, and Iger added to a CNBC interview that shifting the streamer model is a major goal.
"We need the technological tools to lower churn, create more stickiness. It's things like recommendation engines, getting to know our customers better. We need to reduce the cost of marketing. We need to reduce the cost of customer acquisition to get the margins up, obviously."
Going through the usual corporate speak, Iger is indicating Disney is hoping that now being bundled with Hulu can increase the customer base and finally turn a good profit for the streamer. However, it's harder to gauge the customer base when several viewers aren't really subscribers but simply using someone else's password.
It may be annoying for some viewers to know they'll no longer be able to piggyback on someone else's Disney+ account. However, it's also the nature of the business as various streaming services are following suit. Anyone who knows Disney knows they never give their entertainment for free, so folks better enjoy the free passwords while they can before they have to start paying for them.