Disney, the entertainment behemoth, has initiated its crackdown on password sharing for its streaming service, Disney Plus. This move comes shortly after Netflix, another streaming giant, began enforcing similar rules. The decision, announced during Disney’s Q3 2023 earnings call, is seen as a strategy to bolster revenue amidst dwindling subscriptions.
Key Highlights:
- Disney Plus is set to enforce new rules against password sharing.
- The decision was announced during Disney’s Q3 2023 earnings call.
- Disney CEO Bob Iger acknowledges significant password sharing among Disney Plus users.
- The company has the technical capability to monitor and curb this practice.
- New password-sharing terms will be announced by the end of this year, with enforcement starting in 2024.
Disney’s move mirrors that of Netflix, which began its password-sharing crackdown last year and started its enforcement in May. Disney is expected to tread a similar path, with CEO Bob Iger indicating that the company would unveil its new password-sharing terms by the end of the year and commence its crackdown in 2024.
How Will Disney Implement This Crackdown?
While the exact details remain under wraps, it’s speculated that Disney will gradually introduce these new rules, initially in specific markets, before expanding to larger ones, including the UK and the US. Observers believe that Disney might adopt a strategy similar to Netflix, which allows account sharing but at an additional cost or by setting up separate full-priced accounts.
The Implications for Users:
Recent data from password manager service Bitwarden highlights that a significant number of users in the UK and the US continue to share passwords for TV streaming services, despite measures to curb this practice. With streaming platforms collecting vast amounts of user data, including location and device usage, enforcing these new rules might not be as challenging as it seems.
Furthermore, Disney’s decision to clamp down on password sharing coincides with its announcement to hike the prices of its ad-free tiers. Starting from October, Disney Plus will cost $13.99 a month, up from $10.99, and Hulu will be priced at $17.99 a month, a rise from $14.99.
Conclusion:
The crackdown on password sharing by giants like Netflix and now Disney signals a shift in the streaming industry. As these platforms grapple with the challenge of monetizing their services, such rules might become commonplace. While this might not sit well with many users, especially those facing financial constraints, it’s a stark reminder of the evolving dynamics of the digital entertainment world.
