Disney Plus Password-Sharing Crackdown to Begin in June

Disney CEO Bob Iger has disclosed that the company will soon implement a crackdown on password sharing for Disney Plus subscribers. The initiative, aimed at curbing unauthorized password sharing, will commence in June, initially in select countries and markets, before expanding to all subscribers worldwide by September.

This move follows Disney's earlier enforcement of anti-password sharing rules, which came into effect for new subscribers on January 25th and were subsequently applied to existing members on March 14th. The decision mirrors Netflix's strategy, which introduced measures to deter password sharing by imposing an additional fee for extra viewers outside the subscriber's household in 2023.

According to Disney's chief financial officer, Hugh Johnston, subscribers identified for improper sharing will receive prompts to sign up for their own subscriptions starting this summer. Additionally, subscribers can add members outside their household for an extra fee, although Disney has yet to disclose specific pricing details.

The integration of Disney Plus and Hulu into a single app launched recently, is part of Disney's broader strategy to bolster its streaming services. This merger consolidates content from both platforms and enhances user experience by integrating watch history to refine content recommendations.

Bob Iger envisions significant growth for Disney's streaming business, including plans for a streaming-only version of ESPN. He anticipates the streaming segment achieving profitability by the end of the fiscal year, and the implementation of paid password sharing is expected to contribute to this objective.